Question

Would the U.S. economy be better off without importing so much clothing from China? We all know that every action has a benefit and a cost. Who benefits from being able to import clothing from China? Who loses as a result of importing more clothing from China?

Answer 1

The import of clothing means now price of cloth will go down in USA. Thus consumer surplus will witness a significant rise.

But here domestic production of cloth goes down , so employment also decreases. Thus without importing the cost or inflation will increase in economy.