When a country moves from autarky to free trade, it experiences net gains from exporting goods and net losses from importing goods.

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When a country moves from autarky to free trade, it experiences net gains from trade both from exporting goods, where it has a comparative advantage, and from importing goods, where other countries have a comparative advantage. This allows for more efficient allocation of resources and benefits consumers with lower prices and more variety.

When a Country Moves from Autarky to Free Trade, It