Which of the following groups is likely to lose from free trade?
A)Producers of an industry that has been protected from foreign competition
B)Consumers purchasing goods and services
C)Firms aware of the potential gain from free trade
D)Foreign producers buying quota rights to sell goods in the domestic market
E)Domestic producers importing raw materials for the production of manufactured goods

Question

Quizplus · Accepted Answer

Producers of an industry that has been protected from foreign competition are likely to lose from free trade as they will now face competition from foreign producers who may have a comparative advantage in producing those goods, leading to a decrease in demand for their products and a decline in their profits.

Which of the Following Groups Is Likely to Lose from Free