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Formation of Trade Blocs Can Be Considered Beneficial Because It

Question 16

Multiple Choice

Formation of trade blocs can be considered beneficial because it:


A) encourages purchases from higher-cost producers.
B) causes international friction when certain countries are let in the bloc and others are left out.
C) diverts world trade from low-cost producers to high-cost producers by encouraging too much trade within blocs.
D) encourages increased total trade by each member country.

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