The Concept of "Trade Creation" Refers to

question 7

Multiple Choice

The concept of "trade creation" refers to

• A)the opening up of new trading routes.
• B)inefficient trade that follows the establishment of a free-trade area.
• C)trade based on comparative advantage that typically follows the reduction of trade barriers.
• D)increased exports and reduced imports as a result of a high-tariff policy.
• E)regional trade agreements.

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Definitions:

Contract

A legally enforceable agreement between two or more parties that creates mutual obligations enforceable by law.

Breach

The violation or non-fulfillment of a legal obligation, contract, duty, or standard.

Recover

Refers to the process of getting back lost or inaccessible data or functions from damaged or failed hardware or software.

Construction

A process of building, engineering, or assembling infrastructure and buildings.