If a country begins allowing free international trade in a good, and as a result, it increases imports of that good.

Question

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If a country increases imports of a good due to free international trade, domestic consumers gain more than domestic producers lose. This is because imports increase competition, leading to lower prices for consumers. Producers may face more competition and may have to lower their prices, but they also have access to larger markets for their goods. Overall, the gains for domestic consumers from lower prices outweigh the losses for domestic producers.

If a Country Begins Allowing Free International Trade in a Good