Which of the Following Occurs When Lower-Cost External Suppliers Are

question 30

Multiple Choice

Which of the following occurs when lower-cost external suppliers are replaced by higher-cost suppliers within the free trade area?

• A) Efficiency gain
• B) Trade diversion
• C) Trade deficit
• D) Trade creation

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Definitions:

Adding Machine

A mechanical or electronic device used for calculating sums of numbers.

Managing Office Supplies

The process of ordering, stocking, and overseeing the distribution of products and equipment required for the operation of an office.

Least Effort

A principle suggesting that individuals or systems naturally prefer the solution that requires the minimal amount of work.

Expedience

The quality of being convenient and practical despite possibly being improper or immoral; often associated with taking shortcuts.