1.“Even if trade creation gains exceed trade diversion losses, this is not an adequate explanation as to why a country might wish to form a custom union with high cost trading partners. Discuss.
Added by Buhle F.
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Trade creation refers to the increase in trade between member countries of a customs union due to the removal of trade barriers, such as tariffs and quotas. On the other hand, trade diversion refers to the shift in trade from lower-cost non-member countries to Show more…
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