After a country goes from disallowing trade in sugar with other countries to allowing trade in sugar with other countries,

Question

Quizplus · Accepted Answer

When a country allows trade in sugar with other countries, the domestic market will be open to imports and exports. This means that the domestic price of sugar will eventually come to equal the world price of sugar. The process of trade will drive the domestic price towards the world price until the two becomes equal, as the market will seek to find the most efficient and cost-effective way to provide sugar.

After a Country Goes from Disallowing Trade in Sugar with Other