The Concept of "Trade Diversion" Refers to

question 53

Multiple Choice

The concept of "trade diversion" refers to

• A)the main benefit of creating 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:

Response Rates

The frequency at which a certain behavior or reactions occur in a given period of time.

Avoidance Learning

A process by which an individual learns a behavior to avoid an unpleasant or aversive stimulus.

Electric Shock

A sudden discharge of electricity through a part of the body, causing injury or temporary disturbance to its function.

Shuttle Box

An experimental apparatus used in animal learning research, typically for studying avoidance or escape conditioning, consisting of two compartments separated by a hurdle.