When the nation of Isoland opens up its steel market to international trade,that change
A)creates winners and losers,regardless of whether Isoland ends up exporting or importing steel.
B)results in a decrease in total surplus,regardless of whether Isoland ends up exporting or importing steel.
C)creates winners,but no losers,if Isoland ends up exporting steel.
D)creates losers,but no winners,if Isoland ends up importing steel.

Question

Quizplus · Accepted Answer

When a country opens up its steel market to international trade, there will be winners and losers regardless of whether the country ends up exporting or importing steel. Some domestic steel producers may benefit from increased demand and higher prices, while consumers and businesses that rely on steel as an input may face higher prices. Additionally, foreign producers may gain a foothold in the market, creating more competition for domestic producers. Thus, there are winners and losers on both sides of the equation.

When the Nation of Isoland Opens Up Its Steel Market