What is the primary benefit of trading between parties?

The primary benefit of trading between parties is that both parties consume more. Trade allows individuals, businesses, or nations to specialize in the production of goods and services where they have a comparative advantage. This specialization leads to greater overall production efficiency, enabling each party to obtain products that they may not be able to produce as effectively on their own or to acquire a greater quantity of goods at lower opportunity costs.

By trading, both parties can access a wider variety of goods and services than they would in isolation, effectively increasing their consumption possibilities. This enhanced ability to consume promotes higher overall satisfaction and utility, illustrating the fundamental economic principle that trade can be mutually beneficial.