In a two-country model, consumers in the exporting country will be _____, and producers in the exporting country will be _____ with the opening of free trade.

Question

Quizplus · Accepted Answer

In a two-country model, when free trade is opened, consumers in the exporting country benefit from lower prices and more choices, making them happy. Producers in the exporting country benefit from access to larger markets and potentially higher demand for their goods, making them happy as well.

In a Two-Country Model, Consumers in the Exporting Country Will