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Author Question: Why is the net gain from international trade positive? What will be an ideal ... (Read 82 times)

Tirant22

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Why is the net gain from international trade positive?
 
  What will be an ideal response?

Question 2

How is the gain from exports distributed between consumers and domestic producers?
 
  What will be an ideal response?



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manuelcastillo

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Answer to Question 1

The net gain from international trade is positive because the gain to the winners exceeds the losses to the losers. For instance, in the case of an imported good, the gain to consumers exceeds the loss to producer so society gains on net. The situation is similar for exports: The gain to producers exceeds the loss to consumers..

Answer to Question 2

Consumers lose from exports and domestic producers gain from exports.




Tirant22

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


brbarasa

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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