When external scale economies exist in an industry, which of the following groups is most likely to be left worse off after the opening of free trade?

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When external scale economies exist, industries benefit from larger scales of production, leading to lower average costs. Opening to free trade allows countries to specialize based on their comparative advantage. Producers in the importing country, where the industry might not be as competitive or large-scale, could be worse off due to increased competition from more efficient foreign producers, leading to potential losses in market share and profitability.

When External Scale Economies Exist in an Industry, Which of the Following