763EconomicsMedium
Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is ________?
Arelatively high; relatively small
Brelatively low ; relatively small
Crelatively low ; relatively large
Drelatively high; relatively large
Correct answer
D. relatively high; relatively large
Explanation
The correct answer is relatively high; relatively large.