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    Exam 32: Comparative Advantage and the Open Economy
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    To Avoid Tariffs, a Japanese Firm Moves Its Final Assembly
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To Avoid Tariffs, a Japanese Firm Moves Its Final Assembly

Question 170

Question 170

Multiple Choice

To avoid tariffs, a Japanese firm moves its final assembly line to Mexico and then ships the final products to Canada. This is an example of


A) trade deflection.
B) trade diversion.
C) protectionism.
D) rules of origin.

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