What is the concept of marginal utility of international trade?

Economics Marginal Utility Questions



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What is the concept of marginal utility of international trade?

The concept of marginal utility of international trade refers to the additional satisfaction or benefit gained from engaging in international trade. It is based on the principle that as a country engages in trade with other nations, it can obtain goods and services that it may not be able to produce efficiently or at all domestically. This leads to an increase in overall utility or well-being for the country. The marginal utility of international trade is determined by the difference between the value of the goods and services obtained through trade and the opportunity cost of producing them domestically.