________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?

Related Mcqs:

1. _________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels ?

   A. trade creation B. trade diversion C. trade exclusion D. trade distortion...

2. A ____ is a regional trading bloc in Which member countries eliminate internal trade barriers but maintain existing barriers against countries that are not member ?

   A. free trade area B. customs union C. common market D. monetary union...

3. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?

   A. trade diversion B. trade channeling C. trade creation and trade diversion D. trade creation...

4. According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?

   A. similar endowments of natural resources B. similar levels of technology C. similar per-capita incomes D. similar wage levels...

5. An export quota agreement to stabilize the price of bauxite tends to be more successful when the member producer countries as a percentage of the world’s producer countries is __________ and the _________ it is for the member producer countries to store/stock pile bauxite?

   A. relatively small; more difficult B. relatively small; easier C. relatively large; more difficult D. relatively large; easier...

6. Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?

   A. relatively high; relatively large B. relatively high; relatively small C. relatively low ; relatively large D. relatively low ; relatively small...

7. A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle ?

   A. Relative Advantage B. Complete Advantage C. Comparative Edge D. Comparative Advantage...

8. A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle?

   A. Relative Advantage B. Complete Advantage C. Comparative Edge D. Comparative Advantage...

9. If a group of countries abolish trade barriers between them and set same tariffs on goods coming in from other countries they are a ?

   A. common market B. free trade area C. customs union D. federation...

10. Those who argue in favor of import protection generally give the impression that such restricted trade will?

    A. decrease the level of national security B. provide benefits to some particular industry C. provide benefits to the entire nation D. not yield welfare losses for the nation...