How is a country's economic well-being increased through free international trade in goods & services?
According to David Ricardo, along with free international trade, this is mutually beneficial for two countries to each specialize in the production of the goods that it can generates relatively most efficiently and then trade those goods. By doing so, the two countries can enhance their combined production, which lets both countries to consume more of both goods. This argument remains valid even if a country can generates both goods more efficiently than the other country. International trade is not a ‘zero-sum' game in which one country reimbursement at the expense of another country. Rather, international trade could be an ‘increasing-sum' game at which all become winners.