Gains from joining a trade bloc will be higher if the import demands of the member countries are relatively elastic.

Question

Quizplus · Accepted Answer

If the import demands of member countries are relatively elastic, it means that their demand for imported goods is more responsive to changes in price. This will allow member countries to benefit more from the removal of trade barriers within the trade bloc, as they will be able to increase their imports more easily in response to lower prices. This can lead to greater gains from trade, including increased competition, efficiency, and access to a wider range of goods and services.

Gains from Joining a Trade Bloc Will Be Higher If