The Two-Country Partial Equilibrium Model of International Trade Shows That

Multiple Choice

The two-country partial equilibrium model of international trade shows that:

A) in markets where a country is an importer, consumers lose welfare when free trade is established.
B) in markets where a country is an exporter, consumers gain and competing domestic producers lose welfare when free trade is established.
C) there are net gains from trade in each individual market when free trade is established.
D) all of the above.