Trade theorists have proven that the gains from international trade
A) must raise the economic welfare of every country engaged in trade.
B) must raise the economic welfare of everyone in every country engaged in trade.
C) must harm owners of "specific" factors of production.
D) will always help "winners" by an amount exceeding the losses of "losers."
E) usually outweigh the benefits of protectionist policies.

Question

Quizplus · Accepted Answer

While it is difficult to prove that international trade will always increase economic welfare for every individual or group within a country, economists generally agree that the benefits of trade usually outweigh the benefits of protectionism. However, there may still be winners and losers within a country as certain industries or factors of production may become obsolete or face more competition from foreign producers.

Trade Theorists Have Proven That the Gains from International Trade