Trade creation takes place when ?

Regional Trading Arrangements 11/11/2020

A. a country moves from autarky to free trade
B. a movement to a customs union reduces the cost of trade through standardization
C. economic integration results in a movement in product origin to a lower-cost member country
D. economic integration results in a shift in product origin from a lower cost nonmember country to a member country having higher costs

Related Mcqs:

    Which factor of production in the United States is most likely to be made worse off (its factor payment will decrease) because of the North American Free Trade Agreement ?
    A. Capital B. land C. skilled labor D. unskilled labor...
    The Common Agricultural Policy of the European Union has ?
    A. increase American farm exports to the EU B. decrease American farm exports to the EU C. lowered the price of American farm exports to the EU D. not affected the price of American farm exports to the EU...
    If A imposes a per unit tariff of $10 on imports from both B and C A will import ?
    A. 400 units from B B. 200 units from C C. 200 units from each D. 400 units from B and 200 units from C...
    If A forms a customs union with C, the value of trade diversion will be ?
    A. $0 B. $10,000 C. $20,000 D. $40,000...
    ________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?
    A. trade creation B. trade diversion C. trade exclusion D. trade distortion...

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