3028EconomicsMedium
Trade creation takes place when?
Aa movement to a customs union reduces the cost of trade through standardization
Beconomic integration results in a shift in product origin from a lower cost nonmember country to a member country having higher costs
Ca country moves from autarky to free trade
Deconomic integration results in a movement in product origin to a lower-cost member country
Correct answer
D. economic integration results in a movement in product origin to a lower-cost member country
Explanation
The correct answer is economic integration results in a movement in product origin to a lower-cost member country.