Who gains and who loses from trade?

International trade is the exchange of goods and services between countries. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries, or more expensive domestically.

Consumers are the gainers of international trade because international trade allows consumers to purchase goods and services at low prices. Trade leads to a decrease in prices because of competition from foreign producers. This increases their purchasing power as they can buy goods at lower prices.

Producers are the losers of international trade. Trade leads to a decrease in prices as producers face competition from foreign producers which leads them to decrease in prices.