Two Foreign Nations Decided to Impose Tariffs on Imports from All

question 112

Multiple Choice

Two foreign nations decided to impose tariffs on imports from all countries. They set up a free trade area, removing all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Country A now begins to import sugar from Country B. Prior to this, Country A was producing sugar at a higher cost so it now benefits from this transaction. This is an example of

• A) trade creation.
• B) strategic pricing.
• C) synergy.
• D) trade diversion.
• E) protectionism.

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Definitions:

Energy Flow

Energy flow describes the movement of energy through an ecosystem, from primary producers through various consumers, and ultimately to decomposers.

Ecosystem

An ecological community comprising both living organisms and their physical surroundings that interact with each other.

Physical Environment

refers to all the physical and abiotic factors that surround and affect the survival and development of organisms, such as water, air, temperature, and geography.

Ecosystem

A community of living organisms in conjunction with the non-living components of their environment, interacting as a system.