When country A opens up to international trade and its domestic price is higher than the world price, the group that is primarily hurt is domestic sellers.
Here's the reasoning:
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Domestic Consumers: They benefit from international trade because they can purchase goods at a lower world price instead of the higher domestic price.
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International Sellers: They benefit as they can enter the market and sell at a competitive price to consumers in country A.
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Government: The impact on the government can vary depending on tariffs and regulations, but generally, it does not suffer directly from the opening of trade.
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Domestic Sellers: These are the ones who are hurt because, by opening to trade, they now face competition from international sellers who will be able to sell their products at a lower price. This can lead to a reduction in sales for domestic sellers, lower prices domestically, and potentially even losses or business closures.
In summary, when country A opens up to international trade in this scenario, domestic sellers are the ones who are hurt.
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