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:

Assault And Battery

Legal terms where assault refers to the threat of bodily harm that reasonably causes fear of harm in the victim, and battery refers to the actual physical impact on another person.

Consent

Voluntary agreement to or permission for something proposed by another.

Tort Of Nuisance

A legal action for causing substantial and unreasonable interference with an individual's use or enjoyment of their property.

Civil Action

A lawsuit brought to court by one individual or entity against another to protect a civil right or to obtain compensation for a civil wrong.