When a country is open to international trade, the product markets in the country become
A)less competitive because each seller has fewer customers as foreign sellers attract some customers.
B)more competitive because there are more suppliers (both domestic and international sellers) selling in the product markets.
C)less competitive because foreign buyers will attract some of the country's sellers.
D)more competitive because total costs will rise.

Question

Quizplus · Accepted Answer

When a country is open to international trade, it allows for more suppliers to enter the market, leading to increased competition. This increased competition can lead to lower prices, better quality products, and innovation in the marketplace. Therefore, the product markets become more competitive.

When a Country Is Open to International Trade, the Product