Figure 8.1 depicts the supply and demand schedules of calculators for Greece,a "small" country that is unable to affect the world price.Greece's supply and demand schedules of calculators are respectively depicted by SG and DG.Assume that Greece imports calculators from either Germany or France.Suppose Germany is the world's low-cost producer who can supply calculators to Greece at $20 per unit,while France can supply calculators at $30 per unit.
Figure 8.1.Effects of a Customs Union
-Consider Figure 8.1.Comparing the trade creation and trade diversion effects,the impact of the Greece/France customs union on the welfare of Greece is:
Definitions:
Cerebellum
A region of the brain that plays a significant role in motor control, coordination, and balance.
Playing Basketball
Engaging in a team sport involving two teams of five players each, where the objective is to score points by successfully shooting a ball through the opponent's hoop.
Sleeping
A natural, reversible, periodic and state of rest for the mind and body, in which consciousness is partially or completely lost, and there is a decrease in bodily movement and responsiveness to external stimuli.
Homeostasis
The capacity or inclination of a cell or organism to keep a stable internal balance by modifying its physiological activities.
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