Explain the Concepts of Trade Creation and Trade Diversion

question 97

Essay

Explain the concepts of trade creation and trade diversion.Who are the winners and losers in each scenario?

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Definitions:

Concept

A general idea or understanding that is formed by merging particular instances or observations.

Metaphor

The use of a word or expression in a way that does not match its literal meaning, by attributing it to an object or action unrelated to its actual significance.

Opera

A dramatic art form that combines text (libretto) and musical score, typically in a theatrical setting, involving singers and musicians.

Magical

Relating to, invoking, or possessing supernatural powers or qualities.