Principles of Macroeconomics / Unit 17 MAC 1619 short lesson, about 20 seconds
Who Gains and Who Loses
Captions available
The idea
Trade creates winners and losers inside both countries. In the exporting country producers gain and consumers lose. In the importing country consumers gain and producers lose. Total gains exceed total losses in both.
In practice
So both countries are better off overall while both contain people who are worse off.
Where people slip
That combination is the entire political economy of trade policy in one sentence.
Your place on the trail
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