As a general rule, when there are specific factors, owners of factors specific to the importing industry are ______________, whereas owners of factors specific to export industries are ______________.
A) harmed; benefited
B) benefited; harmed
C) unemployed; hired
D) not affected; harmed

Question

Quizplus · Accepted Answer

When a country imports goods, it becomes cheaper for domestic consumers, but it harms the owners of factors specific to the importing industry, as there is increased competition from foreign producers. On the other hand, when a country exports goods, it benefits the owners of factors specific to the export industries, as they receive higher demand for their products from foreign countries.

As a General Rule, When There Are Specific Factors, Owners