Globalisation and International Trade - Trading Blocs - The Direct Effects of a Customs Union: Trade Creation and Trade Diversion
3 important questions on Globalisation and International Trade - Trading Blocs - The Direct Effects of a Customs Union: Trade Creation and Trade Diversion
A country will find that its trade pattern changes with two characteristics:
- Trade diversion
Consumption shifts from a high cost producer to a low cost producer:
Consumptio shifts from a lower-cost producer outside the customs unions to a higher cost producer:
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