Explain the dynamic gains that are generated by opening an economy to trade.

What will be an ideal response?

Answer: According to the textbook, there are two possible gains a country can get if they open their economy to trade. When a country opens their economy, more labor and goods become available to use within the country, leaving the country's original resources available for more use or a wider range of uses than before. The second possible gain is the resources within a country can be used more efficiently. This can be from technological advancements from abroad or competition from foreign countries which force the country to become more efficient if they wish to be the most successful with that product/resource.