Which of the following refers to trade diversion?
A) The volume of trade that is redirected from low-cost exporters to higher cost domestic firms when the domestic government imposes import restrictions
B) The volume of trade that is redirected from low-cost exporters to higher-cost trade bloc member countries
C) The amount of the imported goods that is substituted with domestically produced goods
D) The change in the trade pattern such that the good which was formerly imported is now exported as the government subsidizes its production
Correct Answer:
Verified
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Q12: The NAFTA is an example of a(n):
A)free-trade
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Q15: Which of the following refers to trade
Q16: Formation of trade blocs can be considered
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Q19: The figure given below shows the U.S.
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