When Products from High-Cost Suppliers Within a Customs Union Replace

question 72

Multiple Choice

When products from high-cost suppliers within a customs union replace imports from a low-cost nation that is not a member of the customs union,there exist(s) :

• A) Dynamic welfare losses
• B) Dynamic welfare gains
• C) Trade creation
• D) Trade diversion

---

Definitions:

Value Streams

A value stream refers to the series of activities required to design, produce, and deliver a good or service to a customer, highlighting the value-added and non-value-added steps in the process.

Pull Production

A manufacturing strategy where production is based on customer demand rather than speculative production, aiming to reduce waste and increase efficiency.

Zero Waste

An approach to resource management aimed at avoiding any waste by reusing products and materials in as many cycles as possible.

Cycle Time

The total time from the beginning to the end of a process, providing a measure of the efficiency of the process.