Implementing a Regional Free-Trade Agreement May Have an Effect in Which

question 140

Multiple Choice

Implementing a regional free-trade agreement may have an effect in which, due to reduced tariffs, a nation in the agreement begins to import a product it had previously produced itself. This effect is called:

• A) trade creation.
• B) trade diversion.
• C) reciprocal trade agreements.
• D) the employment effect of FTAs.

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Definitions:

Internal Conflict

A psychological struggle within the mind of a character, manifesting in the form of competing desires or impulses, leading to tension and a need for resolution.

Ontology

The study of being: “What is most real?”; “What is it for a thing to exist?”

Evaluative

Involving value judgments, as opposed to simply being descriptive.

Basic

Constituting an essential foundation or starting point; fundamental characteristics or principles of something.