Suppose That Mexico and Canada Form a Free-Trade Area and Canada

question 152

Multiple Choice

Suppose that Mexico and Canada form a free-trade area and Canada begins importing steel from Mexico rather than from Germany.There occurs:

• A) Trade diversion
• B) Trade creation
• C) Trade destruction
• D) Trade exhaustion

---

Definitions:

Financial Rewards

Monetary benefits given to individuals or employees as recognition for their achievements, performance, or contributions.

Healthy Spirituality

The practice of maintaining a positive and meaningful connection to a higher purpose, which contributes to an individual’s overall well-being.

Spiritual Reading

The practice of reading texts that pertain to spirituality, faith, and moral guidance to deepen one’s spiritual life.

Nonfinancial Resources

Contributions to an entity's value that do not involve money, including intellectual property and human capital.