When a country moves from autarky to free international trade,consumers and producers in the import and export sectors all gain (i.e. ,both consumer surplus and producer surplus increase in both sectors).

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Brooke Mcmillen · Accepted Answer

Final Answer : False, Explanation :  When a country moves from autarky to free international trade, consumers generally gain in the import sector due to lower prices, and producers gain in the export sector due to access to larger markets. However, producers in the import sector and consumers in the export sector may experience losses. Producers face competition from imports, potentially reducing their producer surplus, while consumers may face higher prices in the export sector, reducing their consumer surplus.

When a country moves from autarky to free international trade,consumers and producers in the import and export sectors all gain (i.e. ,both consumer surplus and producer surplus increase in both sectors).

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