A trade-diverting customs union is more likely to lead to trade creation:
A) the lower are the pre-union trade barriers of the member countries
B) the lower are the customs union's barriers on trade with the rest of the world
C) the smaller is the number of countries forming the customs union and the smaller their size
D) the more complementary rather than competitive are the economies of the nations forming the customs union
Correct Answer:
Verified
Q1: The formation of the EU resulted in:
A)trade
Q2: A trade-diverting customs union:
A)increases the welfare of
Q4: A trade-creating customs union is one where:
A)lower-cost
Q5: The formation of a free trade area
Q6: A customs union that allows for the
Q7: Which is not a dynamic benefit from
Q8: A trade-diverting customs union results in:
A)trade diversion
Q9: The formation of a trade-creating customs union
Q10: Which is a stumbling block to successful
Q11: The benefit that the United States is
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