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The book explained that Game theory has two choices: zero-sum and non-zero-sum. Zero-sum means one party will benefit at the loss of the other. Non-zero means both parties will benefit. Our current trade positions are non-zero-sum because we get cheap goods and our trade partner gets jobs. From our view, we might be getting the bad end of the deal because we are losing jobs to countries like India, but we benefit by getting goods at marginal costs and India benefits by gaining a growing middle class...
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Non-zero means both parties will benefit. Our current trade positions are non-zero-sum because we get cheap goods and our trade partner gets jobs. From our view, we might be getting the bad end of the deal because we are losing jobs to countries like India, but we benefit by getting goods at marginal costs and India benefits by gaining a growing middle class...
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