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

question 14

Multiple Choice

Implementing a regional free-trade agreement may have an effect in which, due to reduced tariffs, a nation begins to import a product from another member country that it had previously imported from outside the new trade region. 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:

Categorical Imperative

The moral principle proposed by Immanuel Kant that actions are morally right only if they can be universally applied as a general rule for behavior.

Categorical Imperative

A concept developed by the philosopher Immanuel Kant as a way of evaluating motivations for action, stating that an action is morally right if it can be universally applied to everyone without contradiction.

Immanuel Kant

A German philosopher renowned for his work on the theory of ethics, particularly the concept of the categorical imperative, which asserts that actions are morally right if they can be universally applied.

Moral Stages

Describes the progression of moral reasoning and ethical behavior in humans, often conceptualized as a sequential development through specific stages.