Page "Mercantilism" Paragraph 63

For instance, suppose Portugal was a more efficient producer of wine than England, yet in England cloth could be produced more efficiently than it could in Portugal.

Thus if Portugal specialized in wine and England in cloth, both states would end up better off if they traded.

This is an example of the reciprocal benefits of trade due to a comparative advantage.

In modern economic theory, trade is not a zero-sum game of cutthroat competition because both sides can benefit.