Producers and consumers can be benefited from foreign trade due to

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Expansion of local markets

Increase in efficiency

Both (1) and (2)

None of the above

answer is C.

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Detailed Solution

Producers and consumers have benefited from foreign trade due to the expansion of local markets and the increase in the efficiency to produce.
1) Expansion of local market: Due to the increase in foreign trade, the availability of options in the local market has increased. Producers can also choose to sell their products in markets beyond domestic markets.
2) Increase in efficiency: Foreign trade has increased the competition among the producers. This has increased their efficiency and access to cheap raw materials from other countries. With increased competitiveness, the cost of products has also decreased, benefiting the consumers.

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