The Concept of "Trade Diversion" Refers to

The concept of "trade diversion" refers to

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