Trade Creation Occurs When Imports from a Low-Cost Supplier Outside

question 103

True/False

Trade creation occurs when imports from a low-cost supplier outside of a customs union are replaced by purchases from a higher-cost supplier within the union.

---

Definitions:

Partially Integrated

Refers to a written contract that represents a final agreement on some, but not all, terms between parties.

Handwritten Provisions

Clauses or terms specifically written by hand in a legal document that can modify or add to the standard terms of a contract.

Printed Provisions

Standard terms and conditions that are preprinted on contracts or legal documents.

Parol Evidence

Refers to verbal evidence, as opposed to written, that is not included in a contract's written version, which is typically not admissible to contradict the terms of a finalized written agreement.