If the domestic price of a good is below the prices in other countries and free trade is opened up, then in terms of pricing

Question

Quizplus · Accepted Answer

If the domestic price of a good is below the prices in other countries, opening up free trade would lead to an increase in imports, and domestic consumers would benefit from lower prices. However, domestic producers would face increased competition from foreign producers, which may result in lower profits or even bankruptcy. Therefore, choice C is correct as domestic consumers gain, and domestic producers lose.

If the Domestic Price of a Good Is Below the Prices