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Chapter 34: Q. 36. (page 832)

Why is trade a good thing if some people lose?

Short Answer

Expert verified

Trade has some negative implications but it is also a good thing for world economy.

Step by step solution

01

Step 1. Meaning of trade.

Transfer of goods and services from one person or entity to another, often in exchange for money.

02

Step 2. Positive impact of trade if some people lose.

Generally, due to the phenomenon changes in trade some people losses like domestic producers because trade leads to decrease in the prices. Due to this, domestic producers face competition from foreign producers. This enforces domestic producer to decrease their prices in order to maintain competitions. Thus, trade shows positive impact on the world economy:-

a) Fueling economic growth.

b) Supporting good jobs at home.

c) Raising living standards.

d) Providing consumers with affordable goods and services.

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