A country opens up to trade. In an import industry, surplus has been redistributed from

Question

Quizplus · Accepted Answer

When a country opens up to trade and allows the import industry to flourish, the surplus is typically redistributed from producers to consumers. This is because the increased competition from imported goods often leads to a decrease in prices, which benefits consumers. However, it can also harm domestic producers who may struggle to compete and lose profits.

A Country Opens Up to Trade