Question

Why is trade a good thing if some people lose?

Short answer

Benefits the economy in the long run and encourages healthy competition.

Step-by-step solution

Step1. Introduction

International trade refers to the exchange of goods and services between two countries at a fixed exchange rate.

Step2. Explanation

Trade is a good thing if some people lose because it benefits the economy in the long run and increases the competition in the economy. Domestic producers lose from international trade but it improves the quality of product by encouraging healthy competition, hence improving standard of living and leading to the long-term economic growth.