When Spain joined the European Union,its exports of wheat and other products increased as a result of reduced tariffs. This can best be described as:
A)Trade creation
B)Trade diversion
C)Balance of power
D)Economies of scale
E)European integration

Question

Quizplus · Accepted Answer

The situation described is an example of trade creation, which occurs when a new trade agreement or union leads to increased trade among its members. This is usually due to reduced tariffs and increased market access, as seen in the case of Spain's increased exports after joining the European Union.

When Spain Joined the European Union,its Exports of Wheat and Other