The Concept of "Trade Diversion" Refers to

The concept of "trade diversion" refers to

A) trade that is shifted between members of a customs union.
B) the replacement of a low- cost foreign supplier with a high- cost one based on membership in a trade agreement.
C) the main benefit of creating a free- trade area.
D) an increase in economic efficiency that comes with a newly established trading relationship.
E) something that is predicted by theory,but has never been observed in practice.