Trade creation occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area.

Name: Trade creation occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area.
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Trade creation occurs when higher-cost domestic production is replaced by lower-cost imports from other member countries within a free trade area, leading to more efficient allocation of resources.

Trade Creation Occurs When Lower-Cost External Suppliers Are Replaced by Higher-Cost