Dynamic gains from trade refer to the long-term benefits that a country can experience from engaging in international trade. These benefits include things like:

• Increased productivity: Exposure to foreign competition can spur innovation and increase efficiency, leading to higher productivity.
• Knowledge transfer: Trade can facilitate the transfer of knowledge and technology between countries, leading to new products and services.
• Economic growth: Increased trade can lead to higher levels of investment, which can fuel economic growth.
• Improved living standards: Trade can lead to lower prices for consumers and higher incomes for workers, resulting in improved living standards.
• Increased political stability: Trade can foster cooperation and mutual understanding between countries, reducing the likelihood of conflict.