When an economy shifts from no trade to free trade, the adjustment costs can be:

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Adjustment costs when an economy shifts from no trade to free trade can be significant and may include job losses in industries that are not competitive internationally, retraining costs for workers, and changes in the structure of the economy. These costs can be large enough to call into question the net gains from free trade, especially in the short to medium term, as the economy adjusts to the new trade environment.

When an Economy Shifts from No Trade to Free Trade