The new trade theory puts forward the argument that participation in trade does not always yield benefits 

Traditional trade theory does not specifically analyze the welfare effects of international trade, because its theory concludes that the division of labor according to comparative advantage is beneficial to all countries, and that the benefits of trade come from the increased efficiency of specialized production.

The new trade theory argues that trade benefits come not only from comparative advantage, but also from: economies of scale, increased competition in imperfectly competitive industries, increased product differentiation, etc. At the same time, the new trade theory points out that, despite the existence of potential trade gains, imperfectly competitive markets also generate risks, making it possible for a country's economy not only to fail to take advantage of potential trade gains but also to actually suffer losses.

Trade hurts a country when it causes industries that produce on an incremental scale and highly monopolistic industries to contract, and the other benefits are not sufficient to compensate for the losses from such contraction, suggesting that there are not always benefits to be gained from participation in trade.