Final answer:
The benefits of trade to the economy outweigh the benefits of protecting domestic industries.
Step-by-step explanation:
The benefits to the economy from free trade are greater than the benefits accruing to the domestic industry that is protected from foreign competition for several reasons. Firstly, free trade allows countries to specialize in the production of goods and services in which they have a comparative advantage. This leads to increased efficiency and productivity, resulting in higher economic growth. Secondly, free trade promotes competition, which drives innovation and continuous improvement in products and services. This benefits consumers by providing them with better quality and more affordable options. Finally, free trade provides access to larger markets, allowing businesses to expand and create more job opportunities.