World welfare under a customs union
A) Increases due to a trade creation effect
B) Decreases due to a trade diversion effect
C) Depends on the relative strength of the trade creation effect and the trade diversion effect
D) All of the above

Question

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The Answer of World welfare under a customs union
A) Increases due to a trade creation effect
B) Decreases due to a trade diversion effect
C) Depends on the relative strength of the trade creation effect and the trade diversion effect
D) All of the above

World Welfare Under a Customs Union