When an economy moves from autarky to free international trade,for industries in the export sector,consumer surplus _____,producer surplus _____,and the economy as a whole _____.

Question

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When an economy opens up to free international trade, industries in the export sector typically see an increase in demand for their goods on the global market. This leads to an increase in producer surplus as producers can sell more goods at a higher price. However, consumer surplus in the domestic market may fall because domestic prices for these exported goods increase as a result of higher international demand. Despite this, the economy as a whole gains due to the overall increase in trade efficiency and the benefits of specialization.

When an Economy Moves from Autarky to Free International Trade,for