When a country allows trade and becomes an exporter of a good,
A)domestic producers gain and domestic consumers lose.
B)domestic producers lose and domestic consumers gain.
C)domestic producers and domestic consumers both gain.
D)domestic producers and domestic consumers both lose.

Question

Quizplus · Accepted Answer

When a country allows trade and becomes an exporter of a good, domestic producers gain because they are able to sell more of their product at a higher price on the world market. However, domestic consumers lose because they have to pay a higher price for the product due to the increased demand for it from other countries.

When a Country Allows Trade and Becomes an Exporter of a Good