Which of the Following Defines a Situation of Trade Diversion

Which of the following defines a situation of trade diversion resulting from the formation of a customs union?

A) Production is diverted away from tradeable goods to those which are not traded.
B) Trade between non- union members is diverted to trade with union members.
C) Production is diverted from a lower cost producer outside the union to a higher cost producer within the union.
D) Production is diverted away from trade within the union to trade with non- union members.
E) Production is diverted from a higher cost producer outside the union to a lower cost producer within the union.