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A Trade-Creating Customs Union Is One Where

Question 4

Multiple Choice

A trade-creating customs union is one where:


A) lower-cost imports from outside the customs union are replaced by higher-cost imports from a union member
B) some domestic production in a member nation is replaced by lower-cost imports from another member nation
C) trade among members increases but trade with nonmembers decreases
D) trade among members decreases while trade with nonmembers increases

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