When a Country Allows International Trade and Becomes an Exporter

question 76

Multiple Choice

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

• A)domestic producers of the good become better off.
• B)domestic consumers of the good become worse off.
• C)the gains of the winners exceed the losses of the losers.
• D)All of the above are correct.

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Definitions:

Shortsightedness Effect

The shortsightedness effect refers to the tendency of decision-makers to prioritize short-term gains over long-term outcomes, often leading to suboptimal results.

Immediate Benefits

Advantages or gains that can be realized in the near term without significant delay.

Distant Future

A period of time that is significantly far ahead from the present moment.

Logrolling

In politics, the practice of exchanging favors, especially in legislative bodies, by reciprocal voting for each other's proposed legislation.