Q54Does free trade improve the living standards of all residents of a country?a.No, because the losses in the import-competing industries outweigh the gains from trade in the new export industries.b.Yes, because inefficient import-competing industries are replaced with efficient export industries.c.Probably not. In principle, the net gains from trade could be divided such that every individual is better off, but in practice, some individuals are likely to be worse off.d.No, because the benefits from free trade are only theoretical.e.Yes, definitely, because the gains from trade outweigh the losses in the import-competing industries.

Free trade: - it is the buying and selling of goods and services in the international market without…

Answered: Q54 Does free trade improve the living…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q54

Does free trade improve the living standards of all residents of a country?

No, because the losses in the import-competing industries outweigh the gains from trade in the new export industries.

Yes, because inefficient import-competing industries are replaced with efficient export industries.

Probably not. In principle, the net gains from trade could be divided such that every individual is better off, but in practice, some individuals are likely to be worse off.

No, because the benefits from free trade are only theoretical.

Yes, definitely, because the gains from trade outweigh the losses in the import-competing industries.

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