If a country has a comparative advantage in wine moved from autarky to free trade,this would cause what reaction in the world market?

Question

Quizplus · Accepted Answer

If a country has a comparative advantage in wine and moves from autarky to free trade, domestic wine producers would be opposed because they would face increased competition from foreign wine producers who can produce wine at a lower cost. This would lead to a decrease in the price of wine in the domestic market, which could lower profits for domestic producers. Foreign wine producers may also benefit from the increased demand for wine in the world market, so they may not necessarily be opposed to the change. Domestic wine consumers may benefit from the lower prices, so they would not be opposed.

If a Country Has a Comparative Advantage in Wine Moved