객관식
Purchasing products or materials in other nations and bringing them into one's own country is known as:
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9. International Trade
Exporting and Importing
객관식
When the nation of Duxembourg allows trade and becomes an importer of software, which of the following is most likely to occur in the domestic software market?
A
Domestic producers experience higher profits due to increased demand.
B
The quantity of software produced domestically increases.
C
Domestic consumers benefit from lower prices and increased variety.
D
The domestic price of software rises above the world price.
검증된 단계별 안내1
Step 1: Understand the concept of comparative advantage and how opening to trade affects domestic markets. When a country becomes an importer of a good, it means the world price is lower than the domestic price without trade.
Step 2: Recognize that if Duxembourg imports software, the domestic price will tend to fall to the world price level, benefiting consumers with lower prices and more variety.
Step 3: Analyze the impact on domestic producers: since the domestic price falls to the world price, domestic producers face more competition and typically produce less, which can reduce their profits.
Step 4: Understand that the quantity produced domestically usually decreases because consumers buy more from the cheaper foreign suppliers, so domestic production contracts rather than expands.
Step 5: Conclude that the most likely outcome is that domestic consumers benefit from lower prices and increased variety, while domestic producers face lower prices and reduced production.
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