When a country allows trade and becomes an importer of a good,what is the result

Question

Quizplus · Accepted Answer

When a country becomes an importer of a good, domestic producers of that good face increased competition, which results in lower prices and profit margins. This may result in some producers leaving the market, leading to job losses and possible hardship in the short term. However, consumers benefit from having access to a wider range of goods at lower prices. The overall gains of the winners from the increase in consumer surplus outweigh the losses of the losers. Therefore, the gains of the winners exceed the losses of the losers, which is choice B.

When a Country Allows Trade and Becomes an Importer of a Good,what