If a Customs Union Includes the Low-Cost Supplier of the World

question 56

True/False

If a customs union includes the low-cost supplier of the world, there would be no adverse trade diversion effect that would counteract the positive trade creation effect.

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Definitions:

Stakeholders

Individuals or groups that have an interest or stake in the outcome of a company's actions, including employees, customers, investors, and suppliers.

Government

The organization, or group of people and institutions, that has the authority to govern or lead a community, state, region, or country.

Competitors

Other businesses or individuals that offer similar products or services within the same market, vie for the same customer base, and compete for market share.

Shareholders

Individuals or entities that own a share or shares of stock in a corporation, giving them partial ownership of the company.