Use the following information to answer the following questions.
The before-trade price of logs in New Zealand is $100 per cubic metre. The world price of logs is $200 per cubic metre. New Zealand is a price taker in the world log market.
-When a country allows trade and becomes an exporter of a good:

Question

Quizplus · Accepted Answer

When a country becomes an exporter of a good, it can sell its goods at a higher price in the international market. This leads to an increase in revenue for the exporting firms, which can then pass on some of the benefits to their workers in the form of higher wages or lower prices for goods. The gains of the winners, i.e. the exporters and their workers, exceed the losses of the losers, i.e. domestic firms that face increased competition and some consumers who may face higher prices. Therefore, the correct answer is C.

Use the Following Information to Answer the Following Questions