Nation X's major agricultural product before trade is wheat.Nation X will be potentially better off from open trade if the world price of wheat is ________ its pre-trade price of wheat.

Question

Quizplus · Accepted Answer

Nation X will be potentially better off from open trade if the world price of wheat is either above or below its pre-trade price. If the world price is higher, Nation X benefits from exporting wheat at higher prices. If the world price is lower, consumers in Nation X benefit from cheaper imports.

Nation X's Major Agricultural Product Before Trade Is Wheat