Which term refers to the improvement in performance as a result of trade?

Trade gains refer to the benefits that arise from engaging in trade, which often leads to improved performance in terms of efficiency and productivity. When countries or businesses engage in trade, they can specialize in the production of goods and services where they have a comparative advantage. This specialization allows for a better allocation of resources, increases overall output, and can lead to lower prices for consumers.

As economies focus on areas in which they are most efficient, they can produce more goods and services at a lower cost, improving overall welfare. This concept illustrates the principle that by trading, participants can achieve outcomes that would not be possible in isolation, resulting in a net gain from trade for all involved parties. Such improvements manifest in terms of enhanced economic performance, increased standards of living, and greater diversity of goods available in the market.