Which of the following is a TRUE statement?
A: Everyone benefits from free trade.
B: Only exporters benefit from trade.
C: All producers benefit from trade and but not all consumers benefit.
D: Free trade harms domestic producers of goods that face import competition.
A: Everyone benefits from free trade.
B: Only exporters benefit from trade.
C: All producers benefit from trade and but not all consumers benefit.
D: Free trade harms domestic producers of goods that face import competition.
举一反三
- The law of comparative advantage ( ). A: explains how a country can benefit from trade even if it has absolute disadvantage in production of all commodities. B: explains how the most efficient nations can benefit from trade. C: was introduced by Adam Smith. D: is used to explain the trade between intra-industry trade.
- In a “first-best” world：（ ） A: Free trade is not optimal. B: Free trade is economically efficient. C: Free trade benefits everyone. D: Free trade harms everyone.
- 5. Who would benefit from international trade?
- A win-win situation means that both the country and its consumers can benefit from international trade
- International trade is in principle not different from domestic trade.The main difference is that international trade is typically more （） than domestic trade.