Producers of imported goods are __________ as a result of trade and producers of exported goods are ___________ as a result of trade.

Question

Quizplus · Accepted Answer

Producers of imported goods are losers as they face competition from cheaper imported goods, which might displace them in the domestic market. On the other hand, producers of exported goods are winners as they get access to a larger market, enabling them to sell more and earn higher profits. Therefore, the best choice is C, where producers of imported goods are losers and producers of exported goods are winners.

Producers of Imported Goods Are __________ as a Result of Trade