Which of the following is the situation in which a nation shifts its international trade from nations outside a regional trade bloc to nations within the bloc?
A) trade diversion
B) trade deflection
C) trade retention
D) protectionism

Question

Quizplus · Accepted Answer

Trade diversion refers to a situation where a nation shifts its international trade from nations outside a regional trade bloc to nations within the same bloc because of preferential trade agreements or policies. Ultimately, trade diversion can have negative consequences for non-member nations that were previously trading with the bloc.

Which of the Following Is the Situation in Which a Nation