Why Are the Losers from Free International Trade Not Fully

question 12

Multiple Choice

Why are the losers from free international trade not fully compensated for their losses?

• A) The amount of compensation needed would bankrupt the government.
• B) The people who claim to lose are also the same ones who benefit.
• C) Identifying all losers and the size of their losses is extremely difficult.
• D) No one actually loses from international trade.
• E) The losers are foreigners.

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Definitions:

Cash Inflows

Cash inflows represent the money received by a business from its operational, financial, and investment activities, contributing to its total cash pool.

Rate of Interest

The percent of principal charged by the lender for the use of its money or the rate earned on invested capital.

Initial Investment

The upfront cash outlay required to start a project or investment.

Cash Inflows

Cash inflows refer to the money received by a business from its operational, financing, and investing activities.