An opinion column in the Wall Street Journal argued that “Americans enjoy comparative advantages in [service] sectors such as construction and engineering, but global trade in services is weighed down with regulatory, licensing and other barriers equivalent to tariffs of between 30% and 50% on U.S. exports.” If these barriers to trade in services were reduced and U.S. exports of services increased, briefly explain whether each of the following statements would be true.

a. U.S. firms that export services would benefit.

b. Foreign consumers of U.S. exports of services would benefit.

c. Total consumption of goods and services in the United States would likely increase.

d. Total consumption in the countries buying U.S. exports of services would likely fall.

e. Foreign firms that produce construction and engineering services would likely benefit.