What do absolute gains in international trade assess?

Absolute gains in international trade assess whether trade leads to increased future income and power. This concept focuses on the benefits that countries can derive from engaging in trade, rather than comparing the gains relative to other nations.

When countries engage in trade, they can potentially increase their overall wealth and resources, allowing them to invest in development, enhance their economic status globally, and subsequently increase their power on the international stage. This perspective emphasizes the positive outcomes that arise from trade, advocating that as long as a country benefits from engagement in trade, it is worthwhile, regardless of whether its trading partner also gains or if there is a trade deficit or surplus.

This understanding of absolute gains contrasts with relative gains, which focus on how one country's gains compare to those of another and are often associated with concern over power dynamics and security issues in international relations.