Download or read book Family Economics Review, 1987, Vol. 2 (Classic Reprint) written by Sherry Lowe and published by Forgotten Books. This book was released on 2018-09-09 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Family Economics Review, 1987, Vol. 2 Consumer gains are based on the increase in consumption possibilities due to trade. Trade encourages countries to specialize in the production of goods and services for which they have a comparative advantage, and to pass on any cost saving from such specialization to consumers. In addition, trade enables consumers to purchase goods and services from an international rather than a national marketplace, and to take advantage of production possibilities in different countries. Measurement of the consumer benefits from trade is based on consumer willingness to pay for the product or on consumer demand for the product In an open economy, a country will import goods as long as the world market price is lower than the world supply price (including transport costs). The initiation of trade will result in a lowering of domestic prices. Domestic production will decline and domestic con sumption will increase. Imports account for the difference between domestic demand and supply. Although the consumer gains from trade, the producer loses. The divergence between producer and consumer interests should be borne in mind in evaluating trade regulation policies. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.