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Economics Mcqs
Q
Trade diversion takes place when ?
AA. A country moves from autarky to free trade
BB. A movement to a customs union reduces the costs of trade through standardization economic integration results in a
CC. Economic integration results in a movement in product origin to a lower cost member country
DD. Economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs
Correct Answer:
D. D. Economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs
