The Net Loss from Trade Diversion for a Country Is

question 35

Multiple Choice

The net loss from trade diversion for a country is likely to be smaller if:

• A)the county's import demand is more elastic.
• B)the country's tariff rate on the product is higher.
• C)the good can be produced at relatively lower cost in the bloc-partners than in the outside world.
• D)the bloc partner's export price is closer to the tariff-inclusive price for imports from countries outside the bloc.

---

Definitions:

Hopeless Objections

Customer objections during a sales process that appear insurmountable and often signal a strong resistance to making a purchase.

Negotiation

The process by which the buyer and the seller reach a mutually satisfactory agreement.

Forestall

To prevent, hinder, or obstruct an event, action, or outcome by taking advanced or anticipatory measures.

Objections

Concerns, hesitations, or reasons a potential customer has for not making a purchase, which a salesperson aims to overcome through objection handling techniques.