Which of the following refers to trade creation?
A)The net increase in exports when the currency of a country depreciates with respect to a foreign currency
B)The net increase in imports when foreign firms lower the prices of their exports
C)The net volume of new trade that results from the formation of a trade bloc
D)The net change in the volume of trade when a country raises its barriers on its imports

Question

Quizplus · Accepted Answer

Trade creation refers to the net volume of new trade that results from the formation of a trade bloc. It occurs when member countries replace high-cost domestic production with low-cost imports from other members.

Which of the Following Refers to Trade Creation