Principles of Microeconomics / Unit 16 MIC 1512 short lesson, about 20 seconds
Who Gains and Who Loses from Trade
Captions available
The idea
In the exporting country the price rises: producers gain more than consumers lose. In the importing country the price falls: consumers gain more than producers lose. Social surplus rises in both, with losers inside each.
In practice
Foreign's steelmakers and Home's steel users are the winners.
Where people slip
Gains from trade with losers inside each country is the politics of protection in one diagram.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it