If a country imports goods from overseas, it will always suffer a reduction in welfare.

Question

Quizplus · Accepted Answer

It is not always true that a country will suffer a reduction in welfare if it imports goods from overseas. Imports can provide consumers with a greater variety of goods at lower prices, which can increase their welfare. Additionally, imports can lead to increased competition, which can increase efficiency and innovation in domestic industries. However, importing goods can also have negative effects on domestic industries and employment, which can reduce welfare for some individuals or groups in the country. Overall, the net effect of imports on a country's welfare depends on the specific circumstances and factors involved.

If a Country Imports Goods from Overseas, It Will Always