Why are the losers from free international trade not fully compensated for their losses?
A) The people who claim to lose are also the same ones who benefit.
B) The losers are foreigners.
C) The amount of compensation needed would bankrupt the government.
D) No one actually loses from international trade.
E) Identifying all losers and the size of their losses is extremely difficult.

Question

Quizplus · Accepted Answer

Identifying all the losers and the extent of their losses is extremely difficult. Even if compensation was attempted, it would be challenging to determine who should be compensated and how much. Additionally, compensating everyone who claims to lose from free international trade would be expensive and potentially unfair to those who benefit from such trade.

Why Are the Losers from Free International Trade Not Fully