Trade diversion takes place when ? – McqOptions

MCQOPTIONS

1.	Trade diversion takes place when ?
A.	a country moves from autarky to free trade
B.	a movement to a customs union reduces the costs of trade through standardization economic integration results in a
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
Answer» E.

Discussion

No Comment Found

Related MCQs

Which level of economic integration best applies to the U.S economy ?
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 ?
Which country is not a member of the European Union ?
When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?
When imports from a higher-cost supplier within a customs union replace imports from a lower-cost supplier outside the custom union, there exists ?
Under the EU’s Common Agricultural Policy, a variable import levy equals the ?
Under the Common Agricultural Policy exports of any surplus quantities EU produce are encouraged through the usage of ?
Trade diversion takes place when ?
Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?
Trade creation takes place when ?