(Figure: Market for Watches in Countries A and B) Referring to the graphs, we see that, as a result of free trade, producers of watches in country A and producers of watches in country B Country A Country B S 200 X Price (S) Price (S) 150 100 30 40 50 30 40 50 Watches Watches The producers in both countries will end up winning. O will be the losers; will be the winners O The producers in both countries will end up losing. O will be the winners; will be the losers