Owners of resources specific to export industries tend to lose from international trade, while owners of factors specific to import-competing industries tend to gain.

Question

Quizplus · Accepted Answer

Owners of resources specific to export industries tend to gain from international trade because they can sell their products in larger, international markets, often at higher prices. Conversely, owners of factors specific to import-competing industries tend to lose because they face competition from cheaper or better-quality imports.

Owners of Resources Specific to Export Industries Tend to Lose