Some nations avoid the effects of trade deflection in a trade bloc by enforcing
A) trade deflection.
B) trade diversion.
C) quotas.
D) rules of origin.

Question

Quizplus · Accepted Answer

Rules of origin are used by some nations to avoid the effects of trade deflection in a trade bloc. These rules outline the criteria that must be met for a product to be considered as originating from a particular country, thus preventing importers from rerouting goods through a less-restricted partner country in the trade bloc. By enforcing strict rules of origin, countries can promote fair competition and prevent trade deflection, which could otherwise undermine the goals of the trade bloc.

Some Nations Avoid the Effects of Trade Deflection in a Trade