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Why Can One Often Ignore the Effect of Trade on Consumers

Question 38

Multiple Choice

Why can one often ignore the effect of trade on consumers when analyzing the politics of trade?


A) Trade has no effect on consumers.
B) The number of consumers hurt by trade is exactly offset by the number of consumers helped by trade.
C) Consumers are a large group and the effect of trade on them is dispersed,so they are more likely to suffer collective action problems.
D) Consumers are allied with labor in developing countries and with capital in developed countries,so we only need to focus on the effect of trade on these factors rather than consumers themselves.

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