International Economics 8th Edition by Dennis Appleyard, Alfred Field

Exercise 9

Jones, one of your neighbors, spends the majority of her income on food. She complains to you that, after your country became more open to trade and began exporting a variety of food products, her real income was reduced. She therefore maintains that the country has obviously been hurt by the new, expanded trade and that trade restrictions should be imposed. How would you respond to Ms. Jones?