Suppose Canada Entered into a Free-Trade Arrangement with China And,as

question 93

Multiple Choice

Suppose Canada entered into a free-trade arrangement with China and,as a result,Canadian imports from India were replaced with imports from China.This would be an example of

• A)trade diversion.
• B)trade creation.
• C)dumping.
• D)trade expansion.
• E)countervailing trade.

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Definitions:

Black Markets

Illegal trading systems where goods or services are bought and sold at prices not regulated by the government, often in violation of price controls or rationing.

Black Market

An illegal trading system where goods or services are exchanged without the authorization of the government.

Rent-Controlled Apartment

Housing units whose rent is set and regulated by a government authority, typically below the market rate to make it affordable.

Agency Theory

Addresses potential conflicts of interests among different groups of stakeholders in an organization. The name of the theory and some of its basic principles are derived from the fact that, in most modern organizations, the individuals who own a firm do not actually run it on a daily basis. Problems arise when the interests of the owners (the principals) are in conflict with the interests of the managers (agents).