Suppose a country becomes more open to trade and imports increase.This means that:

Question

Quizplus · Accepted Answer

While the increased imports may benefit some industries and consumers in the country, there may also be industries and workers that are negatively affected by the increased competition. The net gain to the country as a whole will depend on whether the gains from increased efficiency and variety of goods outweigh the losses from job displacement and decreased profitability in certain industries. However, the losses of the losers are generally less than the gains of the winners.

Suppose a Country Becomes More Open to Trade and Imports