When a small, initially closed country engages in free trade:

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Free trade allows a small, closed country to access a larger market, which can provide revenue and increased efficiency. It is unlikely to experience immiserizing growth where the country's terms of trade deteriorate to the point where it is worse off than before engaging in free trade. However, it is possible that the country's production-possibility curve could shift inward if it cannot compete with international producers or if domestic industries struggle to adjust to the new competition.

When a Small, Initially Closed Country Engages in Free Trade