Trade diversion refers to the:
A)tendency of the member countries to trade more with each other than with nonmember nations due to the removal of trade barriers.
B)movement of production to cheaper labor markets in member countries.
C)movement of workers to job markets to gain access to better jobs and wages.
D)dilution of the political and economic rights of a country.
E)increased number of opportunities for countries to trade with one another by removing the barriers to trade and investment.

Question

Quizplus · Accepted Answer

Trade diversion occurs when trade shifts from a more efficient exporter outside the trade agreement area to a less efficient one within the members of the agreement, due to the removal of tariffs among member countries.

Trade Diversion Refers to The