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:

Anterior Pituitary

The front portion of the pituitary gland that secretes hormones responsible for regulating a wide range of biological functions, including growth, metabolism, and reproductive processes.

FSH

Follicle-stimulating hormone, a gonadotropin involved in the regulation of reproductive processes.

LH

Luteinizing hormone, a gonadotropin released by the anterior pituitary gland that plays key roles in controlling the function of ovaries in females and testes in males.

Apoptosis

Programmed cell death; a predictable, controlled process of cell self-destruction.