nternational trade — end of chapter problem expanding trade in general benefits all countries, or they would not willingly engage in trade. but we also know that consumers and society often gain, while particular industries or workers lose. because society and consumers gain, how might the government compensate the few losers for their loss? our government provides no compensation because this would take away from the efficiency that comes with expanded trade. no compensation because it is too difficult to accurately distinguish the gainers from the losers. compensation in the form of trade assistance to those industries harmed by trade agreements. compensation in the form of higher income taxes on the wealthy than on those with low income.



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