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There are a number of good outcomes associated with international trade for an economy in addition to the positive welfare effects from free trade. Consider
There are a number of good outcomes associated with international trade for an economy in addition to the positive welfare effects from free trade. Consider the following situation: Tabletop Inc. is a firm operating in a small economy. If Tabletop Inc. can produce more goods, it can do so at a lower cost per unit. When the economy opens itself up to international trade, Tabletop Inc. is able to enjoy these lower costs since it can now serve a larger market. The scenario described above represents which of the following benefits of free trade? An enhanced flow of ideas Increased variety of goods Increased competition Lower costs through economies of scale
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