The concept of "trade creation" refers to

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Trade creation refers to the increase in trade that occurs as a result of the removal of trade barriers in a free trade agreement or economic integration arrangement. This allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to increased exports and imports between member countries. Option A refers to the creation of new trading routes, which is not necessarily related to trade creation. Option B refers to inefficient trade, which is unlikely to be associated with the removal of trade barriers. Option D is incorrect because high tariffs would typically lead to reduced exports and increased imports. Option E refers to a type of trade agreement, but does not provide information about the concept of trade creation.

The Concept of "Trade Creation" Refers to