What Is Meant by the Concept of "Trade Diversion

question 10

Multiple Choice

What is meant by the concept of "trade diversion"?

• A)the creation of a free-trade area
• B)the replacement of a low-cost foreign supplier with a high-cost one based on membership in a trade agreement
• C)trade that is shifted between members of a customs union
• D)something that is predicted by theory,but has never been observed in practice
• E)an increase in economic efficiency that comes with a newly established trading relationship

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Definitions:

Sample Size

The number of observations or data points selected from a population for the purpose of statistical analysis.

Confidence Interval

A stretch of values, resulting from sample analytics, projected to envelop the value of a hidden attribute in a population.

Population Proportion

The ratio of members within a subset to the total number of members in a population.

Stratified Random Sampling

A method of sampling that involves dividing a population into smaller groups, known as strata, that share similar characteristics, and then randomly selecting members from each stratum for study.