When a country allows trade and becomes an importer of a good,
A)everyone in the country benefits.
B)the gains of the winners exceed the losses of the losers.
C)the losses of the losers exceed the gains of the winners.
D)everyone in the country loses.

Question

Quizplus · Accepted Answer

When a country allows trade and becomes an importer of a good, it benefits the consumers who can now buy the good at a lower price. However, it may harm domestic producers of the same good who now face increased competition. The gains of the winners (consumers) will generally exceed the losses of the losers (domestic producers), resulting in a net positive outcome for the country as a whole.

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