Which of the following is NOT a consequence of international trade for an exporting country?
A)both domestic consumers and domestic producers will be better off
B)the domestic price will rise to equal the world price
C)domestic consumers will be worse off and domestic producers will be better off
D)total combined consumer and producer surplus will rise

Question

Quizplus · Accepted Answer

Option C is not a consequence of international trade for an exporting country because domestic consumers will not be worse off. International trade leads to an increase in imports, which means that domestic consumers can buy products at lower prices than what would have been possible without trade. Domestic producers will be better off due to an increase in sales and profits, but this does not come at the expense of domestic consumers. Therefore, option C is incorrect. Options A, B, and D are all consequences of international trade for an exporting country.

Which of the Following Is NOT a Consequence of International