If a Customs Union Included All of the Countries in the World

question 87

True/False

If a customs union included all of the countries in the world, there could exist only trade creation, not trade diversion.

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Definitions:

Direct Investment

Putting money into a business venture, property, or other investments in a foreign country, aiming for a controlling interest.

Ownership

The state or condition of legally possessing an object, property, or enterprise.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

New Market

Refers to an undiscovered or underexploited segment in the marketplace that a company can target to expand its customer base.