When trade diversion occurs,buyers will likely pay more for products.

Name: When trade diversion occurs,buyers will likely pay more for products.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Trade diversion occurs when a preferential trade agreement (PTA) causes a shift in trade from a more efficient exporter outside the agreement to a less efficient one inside the agreement. As a result, buyers may have to pay more for products due to the higher tariffs imposed on the more efficient exporters outside the PTA.

When Trade Diversion Occurs,buyers Will Likely Pay More for Products