An Example of How Trade Diversion Results in a Suboptimal

Multiple Choice

An example of how trade diversion results in a suboptimal
Situation is auto parts trade between Mexico and the United
States.After NAFTA:

A) Mexico decreased its sales of auto parts to the United States.
B) the United States purchased more auto parts from Mexico due to the elimination of tariffs and reduced purchases from East
Asia, which was the lowest­cost producer.
C) the United States brought a complaint against Mexico for low­ quality auto parts.
D) the United States purchased fewer auto parts from Mexico due to the elimination of tariffs and increased purchases from East
Asia, which was the lowest­cost producer.