What would not be the case when a country allows for trade and - ProProfs Discuss
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What would not be the case when a country allows for trade and becomes an exporter of the good?

Asked by Wyatt Williams, Last updated: Apr 12, 2024

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4 Answers

Anika Nicole

Anika Nicole

Content Writer, Teacher

Anika Nicole
Anika Nicole, Wordsmith, PG In Journalism, New York

Answered Jun 20, 2018

"The losses of domestic consumers exceed the gains of domestic producers". This is definitely not true when a country allows for trade and becomes an exporter of the good. There are other two conditions which are also true. So let's take a look at those two points:

  1. Domestic consumers are better off and domestic producers are worse off.
  2. The economic well-being of a country increases when trade increases. This is because the profit of the winners surpasses the losses of the losers.

And trade can make everyone and everything better if winners agree to compensate the losers.

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Emmanuel Ayensu

Emmanuel Ayensu

Emmanuel Ayensu
Emmanuel Ayensu

Answered Nov 13, 2017

The losses of domestic consumers exceed the gains of domestic producers

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John Adney

John Adney

John Adney
John Adney

Answered Nov 01, 2017

The price paid by the domestic consumer of the good increases

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John Smith

John Smith

John Smith
John Smith

Answered Oct 25, 2016

The losses of domestic consumers exceed the gains of domestic producers
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