Which of the following is the situation in which firms outside a trade bloc shift the final assembling process of partially assembled products into a member nation of the bloc and then export the finished products to other nations within the bloc?
A) trade diversion
B) trade deflection
C) trade retention
D) rules of origin

Question

Quizplus · Accepted Answer

This situation is known as trade deflection, where firms outside a trade bloc shift the final assembling process of partially assembled products into a member nation of the bloc and then export the finished products to other nations within the bloc to take advantage of lower tariffs within the bloc.

Which of the Following Is the Situation in Which Firms