Nigeria has a comparative advantage in oil production and US has comparative advantage of soybean production.?

Which groups is worse off if these two countries specialize and trade?


a)Nigerian oil producters


b)Nigerian soybean producers


c)US soybean producers


d)All of the groups above are better off when specialization and trade take place.





I am pretty sure it is d. But wanted to ask to see if i was right. thanks.Nigeria has a comparative advantage in oil production and US has comparative advantage of soybean production.?
B nigerian soybean producers.





Unless Nigerian soybean producers can expect some sort of compensation, they are going to be worse off because soybean growers in the US can grow soybeans more cheaply than in Nigeria, so if there is trade, than the US soybean imports will be cheaper than the minimum price at which Nigerian soybean growers are willing to produce, which will put them out of business. However, because the economy as a whole will benefit, the government could promise to give Nigerian soybean growers some piece of the gains from trade as compensation, which means they could be better off. But, without government intervention, they will be worse off.