The Trade-Creation Effect Refers To

question 31

Multiple Choice

The trade-creation effect refers to:

• A)a reduction in economic efficiency as a result of a preferential trade agreement.
• B)a production shift to a higher-cost producer as a result of a preferential trade agreement.
• C)the outcome of a preferential trade agreement that allows a country to obtain goods at a lower cost than is available at home.
• D)diversion of production from a country that has comparative advantage.
• E)a production shift to a country that does not have comparative advantage.

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Definitions:

Family Or Medical Leave

Federally protected leave from work for specified family and medical reasons, allowing employees to take time off without losing their job security.

Twelve-Month Period

Refers to any continuous period of twelve months used for financial, operational, or reporting purposes.

Federal Overtime Provisions

Regulations established by federal law that require employers to pay employees extra compensation for hours worked in excess of a standard workweek.

Forty Hours

Refers to the standard full-time working hours in a week for many employment contracts, typically 8 hours a day for 5 days.