Trade Diversion Refers To

Multiple Choice

Trade diversion refers to:

A) the redistribution of incomes derived from trade between industries in a country within a regional trade bloc.
B) an additional amount of international trade resulting from trade preferences that a nation grants to a trading partner.
C) a shift in international trade caused by one nation giving trade preferences to another, which can cause trade with a third country to decline.
D) the movement of goods or components of goods from a country outside a regional trade bloc to one within the bloc so that the seller can benefit from trading preferences within the bloc.