Under the standard economic argument opening a country to trade Group of answer choices Creates winners and losers, but the gains to the winners are larger than the losses to the losers Creates winners and losers, but the gains to the winners are smaller than the losses to the losers Benefits everybody in the long run Hurts everybody in the long run
Added by Stefanie A.
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Step 1: Opening a country to trade allows for the import and export of goods and services, leading to increased competition and potentially lower prices for consumers. Show more…
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An article in the New Yorker states, "the main burden of trade-related job losses and wage declines has fallen on middle- and lower-income Americans. But ... the very people who suffer most from free trade are often, paradoxically, among its biggest beneficiaries." Explain how it is possible that middle- and lower-income Americans are both the biggest losers and at the same time the biggest winners from free trade.
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In principle, the benefits of international trade to a country exceed the costs, no matter whether the country is importing or exporting. In practice, it is not always possible to compensate the losers in a country, for example, workers who lose their jobs due to foreign imports. In your opinion, does that mean that trade should be inhibited to prevent the losses?
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