Which feature of a customs union differentiates it from a free trade area?

Adoption of a common external trade policy More test answers on https://studyhippo.com/ib-chapter-9/

_____ occurs when lower-cost external suppliers are replaced by higher-cost suppliers within a free trade area.

Correct Trade diversion More test answers on https://studyhippo.com/bus-280-q-9/

Trade diversion occurs when higher-cost external producers are replaced by lower-cost external producers within the free trade area. TRUE or FALSE

False More test answers on https://studyhippo.com/mgt-302-ch-9/

The Free Trade Area of the Americas (FTAA) is a trade agreement ________.

that has been proposed to create the largest free trade area on the planet More test answers on https://studyhippo.com/global-test-2/

The most enduring free trade area in the world is the:

European Free Trade Association More test answers on https://studyhippo.com/global-91011/

In addition to NAFTA, the only other significant trade bloc in the Americas is Free Trade Area of the Americas (FTAA).

True More test answers on https://studyhippo.com/ib-chapter-9/

The country of Argonia and the country of Berylia imposed tariffs on imports from all countries. They set up a free trade area, removing all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Argonia now begins to import sugar from Berylia. Previously, Argonia was indigenously producing sugar at a higher cost. Thus, Argonia benefits from this transaction. This is known as _____.

Correct trade creation More test answers on https://studyhippo.com/bus-280-q-9/

Core part: Free Trade Area

-all barriers to the trade of goods and services among member countries are removed. no discriminatory tariffs, quotas, subsidies, or administrative impediments are allowed to distort trade between members. -each country is allowed to determine trade policies More test answers on https://studyhippo.com/international-management-ch-9/