All of the Following Are True of Trade Diversion EXCEPT

question 136

Multiple Choice

All of the following are true of trade diversion EXCEPT that it ________.

• A) is the opposite of trade creation
• B) can unintentionally reward a less-efficient producer within the trading bloc
• C) can increase prices of products
• D) guarantees consumers a wider selection of goods

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Definitions:

OECD Convention

An international agreement established by the Organisation for Economic Co-operation and Development aimed at combating bribery of foreign public officials in business transactions.

Price Fixing

An agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand.

Criminally Liable

The legal responsibility for committing a crime, where an individual is subject to prosecution and potential punishment under criminal law.

Subjective Fault

A legal concept pertaining to the personal and individual blame or responsibility one has due to their own mental state or intentions.