The increase in trade due to a decrease in trade barriers is called

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The increase in trade due to a decrease in trade barriers is called trade creation. Trade diversion, on the other hand, refers to a situation where a free trade agreement leads to a shift in a country's imports away from more efficient producers outside the agreement towards less efficient producers within the agreement. Multilateral negotiations and the Uruguay Round are processes that led to the formation of the World Trade Organization and the establishment of rules for international trade. Free trade is a policy that advocates for the absence of government intervention in international trade.

The Increase in Trade Due to a Decrease in Trade