International trade improves the welfare of trading countries and the benefits of trade are distributed evenly across all segments of society.

Question

Quizplus · Accepted Answer

While international trade generally improves the welfare of trading countries by allowing them to specialize in goods in which they have a comparative advantage, leading to increased efficiency and potentially lower prices for consumers, the benefits of trade are not distributed evenly across all segments of society. Some industries or workers may face job losses or reduced wages due to competition from imports, leading to economic disparities within countries.

International Trade Improves the Welfare of Trading Countries and the Benefits