Assume That U

Multiple Choice

Assume that U.S.companies are importing the same product from Mexico and Taiwan.The United States enters into an FTA with Mexico but not with Taiwan.Consequently, the United States begins to import more goods from Mexico (due to lower tariffs) than from Taiwan, even though the Mexican products are not any better or cheaper.This is most likely an example of ________.

A) trade specialization
B) trade internalization
C) trade creation
D) trade diversion