Asked by Caleb Glenney on May 08, 2024

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If a country allows free trade and imports cars, then it is the case that the gains to domestic producers outweigh the losses to domestic consumers.

Domestic Producers

Domestic producers are individuals or companies that manufacture goods or provide services within a country's borders, contributing to its domestic economy.

Domestic Consumers

Domestic consumers refer to individuals or entities within a country that purchase goods or services for personal use.

Free Trade

The exchange of goods and services between nations without restrictive regulations such as tariffs, duties, or quotas, intended to create more efficient markets.

  • Understand the way trade may boost the economic prosperity of a nation.
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SS
Sadaf SediqiMay 11, 2024
Final Answer :
False
Explanation :
In a scenario where a country allows free trade and imports cars, the gains are typically greater for domestic consumers, who benefit from lower prices and more choices, while domestic producers might face increased competition and potential losses.