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What Is Trade Diversion and Trade Creation

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Essay

What is trade diversion and trade creation?


Definitions:

Market

A Market is any structured system where economic transactions between buyers and sellers take place, including physical locations or virtual spaces.

Demand Curve

A visual depiction showing how the quantity of a product demanded is related to its price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price, holding all else constant.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers over a range of prices.

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