________ occurs when a reduction of trade barriers among members of a trading bloc causes trade among them to take the place of trade with countries outside the bloc.

Question

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Trade diversion occurs when a reduction of trade barriers among members of a trading bloc causes trade among them to take the place of trade with countries outside the bloc. This can happen when a less efficient member of the trading bloc gains a competitive advantage over a more efficient non-bloc member, resulting in trade being diverted to the less efficient member.

________ Occurs When a Reduction of Trade Barriers Among Members