The gains from free trade are enjoyed by a number of people and the costs of free trade are imposed by number of people.

Question

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The gains from free trade are enjoyed by a large number of people, such as consumers who have access to a wider range of products at lower prices, and firms that have access to larger markets and cheaper inputs. On the other hand, the costs of free trade are imposed by a smaller number of people, such as workers who face competition from imports and may lose their jobs or see their wages decline, and firms that face increased competition from imports and may go out of business. Therefore, the gains are widely dispersed while the costs are concentrated, which is why free trade can be politically difficult to achieve.

The Gains from Free Trade Are Enjoyed by a Number