When a country allows international trade and becomes an importer of a good, domestic producers of the good are better off, and domestic consumers of the good are worse off. a. TRUE b. FALSE

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Business

Gavyn Avery

5 July, 21:56

When a country allows international trade and becomes an importer of a good, domestic producers of the good are better off, and domestic consumers of the good are worse off. a. TRUE b. FALSE

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Rhys Ellis · Answer 1

B. FALSE

Explanation:

When a country becomes an importer of a specific kind of good, the local / domestic producers are worse off because it increases competition in their local market.

If a good is imported there will be a decrease in producer surplus, and an increase in consumer surplus. Domestic producers lose from trade, and domestic consumers gain.