Parson's Pet Products, an Australian firm, ships many products to Canada. In order to take advantage of low trade barriers in the United States, Parson's Pet Products ships its items first to the United States and then re-exports the goods to Canada. Parson's Pet Products is most likely using ________.

Question

Quizplus · Accepted Answer

Trade deflection occurs when a company ships its products to a country with lower trade barriers before exporting them to their final destination to take advantage of these lower barriers, which is what Parson's Pet Products is doing by shipping through the United States to reach Canada.

Parson's Pet Products, an Australian Firm, Ships Many Products to Canada