Given that the import price of a commodity is lower than the equilibrium domestic price, international trade:

Question

Quizplus · Accepted Answer

International trade would be beneficial to the society as a whole if the import price is lower than the equilibrium domestic price. Consumers would benefit from the lower prices, and domestic producers could increase their competitiveness by either reducing prices or improving product quality. The overall gains from trade would outweigh the losses incurred by domestic producers. Therefore, international trade would benefit society as a whole.

Given That the Import Price of a Commodity Is Lower