The phenomenon that occurs when high-cost domestic producers are replaced by low-cost producers within the free trade are is called
A)trade alteration.
B)trade qualification.
C)trade diversification
D)trade diversion.
E)trade creation.

Question

Quizplus · Accepted Answer

Trade creation occurs when high-cost domestic producers are replaced by low-cost producers within a free trade area, leading to more efficient production and lower prices for consumers.

The Phenomenon That Occurs When High-Cost Domestic Producers Are Replaced