Q
Trade creation takes place when ?
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A
A. A country moves from autarky to free trade
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B
B. A movement to a customs union reduces the cost of trade through standardization
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C
C. Economic integration results in a movement in product origin to a lower-cost member country
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D
D. Economic integration results in a shift in product origin from a lower cost nonmember country to a member country having higher costs
Correct Answer:
C. C. Economic integration results in a movement in product origin to a lower-cost member country
