When a country allows trade and becomes an importer of goods, producers gain more than consumers lose.

Question

Quizplus · Accepted Answer

When a country allows trade and becomes an importer of goods, it is typically because the goods can be obtained more cheaply from abroad than they can be produced domestically. In this scenario, consumers gain from lower prices and a wider variety of goods, but domestic producers may lose out because they face tougher competition from foreign firms, which can lead to reduced profits and possibly job losses in the affected industries.

When a Country Allows Trade and Becomes an Importer of Goods