All of the Following Are True of Trade Diversion EXCEPT

question 136

Multiple Choice

All of the following are true of trade diversion EXCEPT that it ________.

• A) is the opposite of trade creation
• B) can unintentionally reward a less-efficient producer within the trading bloc
• C) can increase prices of products
• D) guarantees consumers a wider selection of goods

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Definitions:

Account

A record or statement that details financial transactions and their impact on an entity's financial position.

Guaranteed Annual Rate

The minimum annual return promised to an investor by an investment product, regardless of market conditions.

Fixed Rate

An interest rate that remains the same throughout the entire term of a loan, investment, or financial product.

Stocks

Shares of ownership in a company that entitle the holder to a claim on part of the company’s assets and earnings.