An increase in the level of trade among nations that results from regional economic integration is called ________.
A) trade diversion
B) mercantilism
C) trade creation
D) economic nationalism

Question

Quizplus · Accepted Answer

Trade creation is the correct term to describe the increase in trade resulting from regional economic integration. This occurs when member countries are able to produce goods more efficiently and at lower costs, leading to increased trade within the group.

A) Trade diversion refers to a situation where regional economic integration leads to a decrease in trade with non-member countries.
B) Mercantilism is an outdated economic theory that emphasizes increasing a country's wealth through exports and accumulating gold and silver.
D) Economic nationalism refers to a government's efforts to protect domestic industries and promote economic independence, often through trade barriers and other protectionist policies. This is not directly related to regional economic integration.

An Increase in the Level of Trade Among Nations That