Kizspy | Question: 12
(Choose 1 answer)
Trade diversion occurs when:
A. low-cost producers within the free trade area replace high-cost domestic producers.
B. lower-cost suppliers replace higher-cost external suppliers within the free trade area.
C. higher-cost external suppliers replace lower-cost domestic producers within the free trade area.
D. higher-cost suppliers replace lower-cost external suppliers within the free trade area.
