Which specific factor loses from trade?
A) one that is specific to the importing industry
B) one that is specific to the exporting industry
C) one that is mobile between sectors
D) None of these loses from trade.

Question

Quizplus · Accepted Answer

A factor that is specific to the importing industry tends to lose from trade because the increase in imports can lead to a decrease in domestic production in that industry, negatively affecting factors (like labor or capital) that are specialized in that industry and cannot easily move to other sectors.

Which Specific Factor Loses from Trade