te Colvin-Wicipedia 34 unresad) - andreliabutter Regional economic integret M Mc
ID: 327669 • Letter: T
Question
te Colvin-Wicipedia 34 unresad) - andreliabutter Regional economic integret M McGraw-Hill Cennect-Ebock+ a search ? etornteducation.com hm.tpx Regional economic integration is an agreement each other I among countries in a geographic area to reduce tariff and nontant barners to the free flow of goods, services, and factors of production between There are costs and benefits associated with regional economic integration. Ac creation versus trade diversion a cording to economists, the amount of benefits versus costs can be measured by whether the indegration leads to trade Rol over each product listed on the left and ater reviewing the related hint, drag them under erther trade creation or trade diversion Sugar Trade Creation Trade Diversion Computer chips Cocoa Solar panels TetlesExplanation / Answer
Answer:
Trade Diversion: This is an international economic subject. Trade diversion is the process of diverting trade from high efficient exporter to low efficient exporter with formation of free trade agreement, which helps in lower down the total costs of the goods and it is easy for other to explore.
Trade Creation: This is an international economic subject. In trade creation economics, the flows of trades are redirected due to the formation of free trade agreements or custom unions.
The given items can be divided into Trade creation and Trade diversion as below
Trade Creation: We can explore directed flows for trade of below common items like Sugar, Cocoa and textiles, because these items are already at low cost and thetrade can be explored on these items.
Trade Diversion: We can explore free trade agreement process or custom unions for below items, Computer chips, Solar Panels, because these items are at high price and by having free trade agreement, the cost of goods can be lowered and can be used by consumers.
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