When a Country Adopts Free Trade and Becomes a Net

question 76

Multiple Choice

When a country adopts free trade and becomes a net exporter of a good, that good:

• A) becomes cheaper for domestic consumers.
• B) becomes more expensive for domestic consumers.
• C) does not change in price.
• D) may get cheaper or more expensive for domestic consumers.

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Definitions:

Incidental Beneficiary

A third party who might benefit from a contract between two other parties but does not have legal rights to enforce the contract terms.

Assignment

The transfer of rights, duties, or property from one party to another, often used in the context of contracts or real estate.

Third-Party Beneficiary

An individual or entity that is not directly involved in a contract but stands to benefit from it as specified by the contracting parties.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights with respect to each other.