1740EconomicsMedium
Trade diversion takes place when?
Aeconomic integration results in a movement in product origin to a lower cost member country
Ba movement to a customs union reduces the costs of trade through standardization economic integration results in a
Ceconomic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs
Da country moves from autarky to free trade
Correct answer
C. economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs
Explanation
The correct answer is economic integration results in a shift in product origin from a lower-cost, nonmember country to a member country having higher costs.