During 2005-2006 Europe imported more than $70 million worth of US long -grain rice. How is the gain from trade distributed?

Question

Quizplus · Accepted Answer

European rice consumers gain from trade because they can purchase US long-grain rice at a lower price than they would have otherwise. American rice producers also benefit from trade by exporting their rice to Europe and earning profits. However, it is likely that European rice producers may lose out on market share or lower prices due to the competition from US rice. Therefore, the net gain from trade is distributed towards European rice consumers.

During 2005-2006 Europe Imported More Than $70 Million Worth of US