What Is Meant by the Concept of "Trade Diversion

Multiple Choice

What is meant by the concept of "trade diversion"?

A) the creation of a free-trade area
B) the replacement of a low-cost foreign supplier with a high-cost one based on membership in a trade agreement
C) trade that is shifted between members of a customs union
D) something that is predicted by theory,but has never been observed in practice
E) an increase in economic efficiency that comes with a newly established trading relationship