Which of the following occurs when high-cost domestic producers are replaced by low-cost producers within a free trade area?
A)Value creation
B)Strategic pricing
C)Trade creation
D)Trade diversion
E)Economic exposure

Question

Quizplus · Accepted Answer

Trade creation occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area. It may also occur when higher-cost external producers are replaced by lower-cost external producers within the free trade area.

Which of the Following Occurs When High-Cost Domestic Producers Are