Under what condition does international trade usually result in welfare losses for certain groups within a nation?

Show Answers

When the country's resources have limited mobilityWhen the country's resources can move freelyWhen the nation has a relatively low initial standard of livingWhen the country imposes high tariffs on importsWhen the country has a large trade surplus

Explanation

International trade can create winners and losers within a country. Welfare losses are more likely to occur when resources, such as labor and capital, cannot easily shift between industries or sectors. Limited resource mobility prevents affected groups from adapting to changes caused by trade, leading to localized losses despite overall gains.