/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q. 35 Who gains and who loses from tra... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 21: Q. 35 (page 522)

Who gains and who loses from trade?

Short Answer

Expert verified

Gainers- Consumers.

Losers- Producers (domestic).

Step by step solution

01

Step1. Introduction

International trade refers to the exchange of goods and services between countries.

02

Step2. Explanation

Consumers are the gainers of international trade because international trade allows consumers to purchase goods and services at low prices. Trade leads to a decrease in prices because of competition from foreign producers. This increases their purchasing power as they can buy goods at lower prices.

Producers (domestic) are the losers of international trade. Trade leads to a decrease in prices as producers face competition from foreign producers which leads them to decrease in prices.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What are main reasons for protecting 鈥渋nfant industries鈥�? Why is it difficult to stop protecting them?

What might account for the dramatic increase in international trade over the past 50 years?

Why do you think that the GATT rounds and,

more recently, WTO negotiations have become longer and more difficult to resolve?

Name several of the international treaties where countries negotiate with each other over trade policy.

Economists sometimes say that protectionism is

the 鈥渟econd-best鈥� choice for dealing with any particular problem. What they mean is that there is often a policy choice that is more direct or effective for dealing with the problem鈥攁 choice that would still allow the benefits of trade to occur. Explain why protectionism is a 鈥渟econd-best鈥� choice for:

a. helping workers as a group

b. helping industries stay strong

c. protecting the environment

d. advancing national defense
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.