The shifting of trade away from the low-cost producer toward a higher-cost producer because of a reduction in trade barriers with the country of the higher-cost producer is called

Question

Quizplus · Accepted Answer

This is the definition of trade diversion, as it involves a shift in trade away from a lower-cost producer towards a higher-cost producer due to changes in trade barriers. The other answer choices do not accurately describe this phenomenon.

The Shifting of Trade Away from the Low-Cost Producer Toward