When a country allows international trade and becomes an importer of a good,
A)domestic producers of the good become better off.
B)domestic consumers of the good become better off.
C)the gains of the winners fall short of the losses of the losers.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

When a country becomes an importer of a good, domestic consumers usually benefit from lower prices and increased availability of the good. However, domestic producers of the good may suffer as they face increased competition from foreign producers. The overall gains from international trade are usually positive, but the distribution of these gains may not be equal.

When a Country Allows International Trade and Becomes an Importer