The effect of international trade on the price of the goods traded:
A) are long-run changes.
B) are short-run changes.
C) are nonexistent and should not be considered.
D) are secondary effects and only partially beneficial to both countries.
E) None of the above

Question

Quizplus · Accepted Answer

International trade affects the prices of goods over the long run through mechanisms such as comparative advantage, economies of scale, and increased competition, which can lead to changes in supply and demand dynamics.

The Effect of International Trade on the Price of the Goods