When a Country Allows Trade and Becomes an Exporter of a Good

question 121

Multiple Choice

When a country allows trade and becomes an exporter of a good,

• A)domestic producers gain and domestic consumers lose.
• B)domestic producers lose and domestic consumers gain.
• C)domestic producers and domestic consumers both gain.
• D)domestic producers and domestic consumers both lose.

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Definitions:

Merchandising Company

A type of business that purchases finished goods and sells them to consumers without changing their form.

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. It represents the proportion of each dollar of revenue that the company retains as gross profit.

Local Retailer

A business that sells products directly to consumers in a specific geographical area.

Cost of Goods Sold

The costs directly associated with manufacturing the products a company sells, such as materials and labor expenses.