Under free trade and comparative advantage, the home country:
A) will see only benefits for its resources.
B) will see only losses for its resources.
C) will see winners and losers within its economy.
D) will be convinced that trade is not beneficial.

Question

Quizplus · Accepted Answer

Free trade and comparative advantage can lead to winners and losers within an economy, as certain industries may face increased competition from foreign producers while other industries may benefit from increased exports. Therefore, the home country may see both benefits and costs to its resources.

Under Free Trade and Comparative Advantage, the Home Country