Question

15. When a country participates in international trade as an exporter of a good, domestic producers

a. win while home consumers lose.

b. Both domestic producers and consumers win.

C. lose while domestic consumers win.

  d. both domestic producers and consumers lose.

Answer 1

Answer: Both domestic producers and consumers win.

Explanation:

With trading internationally, the winners incorporate customers (purchasers) and domestic organizations that send out merchandise (venders). Customers see the advantages of exchange terms of assortment and cost. Worldwide exchange guarantees that customers approach a more significant variety of merchandise and ventures. Numerous individuals purchase imported merchandise and ventures when the prices of those imports are lower than the prices of household merchandise and administrations. This frequently happens when makers in remote nations can create these ventures and products at a lesser cost than household makers. These lower costs often convert into lower prices, which advantage buyers by extending their buying power.

Domestic dealers additionally advantage from the exchange. Domestic organizations that fare have the world as their commercial centre, not merely the local economy. Creating for this bigger advertises offers them the chance to develop and design for a more significant scope. These economies of scale empower them to exploit efficiencies and produce products at a lower reasonable expense. The lower creation costs help make the organizations increasingly severe and can result in lower prices for customers.