Question

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

Answer 1

Answer:

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.