Economic restructuring that takes place as a result of opening to trade with other countries
A)contradicts the idea of gains from trade.
B)causes some trading activity to be zero sum.
C)worsens the nation's allocation of resources.
D)improves the nation's allocation of resources.
E)is a highly unlikely event.

Question

Quizplus · Accepted Answer

Economic restructuring as a result of opening to trade allows for the allocation of resources to be improved. Opening up to trade allows for a wider market to sell goods to and acquire goods from, which leads to an increase in efficiency and specialization in the production of goods and services. As a result, resources are allocated more efficiently, leading to overall economic growth.

Economic Restructuring That Takes Place as a Result of Opening