When a country abandons no-trade policies in favor of free-trade policies and becomes an importer of steel, then the domestic price of steel will increase as a result.

Question

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When a country shifts from no-trade policies to free-trade policies and becomes an importer of steel, the domestic price of steel typically decreases because the country now has access to cheaper steel from abroad, increasing supply and reducing prices domestically.

When a Country Abandons No-Trade Policies in Favor of Free-Trade