When Australia imports goods from the rest of the world, which of the following parties is harmed? i. Domestic producers of the good.
Ii) Domestic consumers of the good.
Iii) Foreign producers of the good.

Question

Quizplus · Accepted Answer

When Australia imports goods from the rest of the world, domestic producers of the good are harmed as they face competition from foreign producers who can offer goods at a lower price. However, domestic consumers of the good benefit as they can purchase the good at a lower price. Foreign producers of the good are not necessarily harmed as they are still able to sell their product and make a profit. Therefore, the only party that is clearly harmed by imports is domestic producers of the good.

When Australia Imports Goods from the Rest of the World