If Australia imports toys from other countries, Australian producers of toys are better off as a result of trade, but Australian consumers of toys are worse off.

Question

Quizplus · Accepted Answer

If Australian producers of toys are better off due to trade, it implies that they have access to cheaper inputs or materials from other countries, which could result in lower production costs and higher profits. Additionally, they may have the opportunity to sell their toys in foreign markets and increase their revenue. On the other hand, if Australian consumers of toys are facing competition from imported toys, they may have to pay lower prices due to increased supply, or they may have access to a wider variety of toys. Therefore, trade can benefit both producers and consumers, and it is not necessarily the case that one group is better off at the expense of the other.

If Australia Imports Toys from Other Countries, Australian Producers of Toys