What are the best ways to measure the gains from trade for a country?
Trade is the exchange of goods and services between countries or regions. Trade can benefit both parties by allowing them to specialize in what they are good at and access a wider variety of products at lower prices. But how can we measure the gains from trade for a country? What indicators can we use to compare the welfare of different trading partners and scenarios? In this article, we will explore some of the best ways to measure the gains from trade for a country, using concepts from economics such as consumer surplus, producer surplus, and trade triangles.