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Define Trade Creation and Trade Diversion with Respect to Regional

question 67

Essay

Define trade creation and trade diversion with respect to regional economic integration.Given that integration can both create and divert trade,under what circumstances will regional integration be in the best interest of the world economy?


Definitions:

Systemic Circuit

The part of the cardiovascular system that carries oxygenated blood away from the heart to the body and returns deoxygenated blood back to the heart.

Pulmonary Circuit

The part of the circulatory system that carries deoxygenated blood from the heart to the lungs for oxygenation, and returns oxygenated blood back to the heart.

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to the body.

Left Ventricle

The chamber of the heart that receives oxygenated blood from the left atrium and pumps it out under high pressure through the aorta to the systemic circulation.

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