Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 20: Q. 36 (page 490)

Why is trade a good thing if some people lose?

Short Answer

Expert verified

Trade is a good thing if some people lose because it benefits the economy in the long run and increases the competition in the economy.

Step by step solution

01

Step 1. Meaning of international trade.

International trade refers to the exchange of goods and services between two countries at a fixed exchange rate.

02

Step 2. Reason for trade is a good thing.

Trade is a good thing if some people lose because it benefits the economy in the long run and increases the competition in the economy. Domestic producers lose from international trade but it improves the standard of living and hence the long-term economic growth.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What are some ways that governments can help people who lose from trade?

Explain how trade barriers raise wages in protected industries by reducing average wages economy-wide.

How is international trade, taken as a whole, likely to affect the average level of wages?

How do you think Americans would feel if other countries began to urge the United States to increase environmental standards?

Explain how a tariff reduction causes an increase in the equilibrium quantity of imports and a decrease in the equilibrium price. Hint: Consider the Work It Out "Effects of Trade Barriers."
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free