When the European Union was formed, the size of the market increased for European companies.This is most likely an example of a ________.
A)dynamic effect
B)static effect
C)trade diversion
D)trade reflection

Question

Quizplus · Accepted Answer

The formation of the European Union created a new and larger market for European companies. This resulted in increased opportunities for trade, investment, and growth, leading to a dynamic effect. A dynamic effect is a long-term, positive impact of an economic policy or event that leads to changes and improvements beyond the immediate effects.

When the European Union Was Formed, the Size of the Market