When products from high-cost suppliers within a customs union replace imports from a low-cost nation that is not a member of the customs union, there exist(s):
A. Dynamic welfare losses
B. Dynamic welfare gains
C. Trade creation
D. Trade diversion
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Which form of economic integration occurs when participating countries abolish tariffs on trade among themselves, establish a common tariff on imports from nonmembers, and permit free movement of captial and labor within the organization?
A. Free trade areaFreetradearea
B. Economic unionEconomicunion
Common market
D. Monetary union
A static welfare effect resulting form the formation of the European Union would be:
A. Economies of scale
B. Trade diversion
C. Inveatment incentives
D. Increased competition
A dynamic welfare gain resulting from the formation of the European Union would be:
A. Trade diversion
B. Trade craetion
C. Diseconomies of scale
D. Economies of scale
Which organization was founded in 1957 whose objective was to create an economic union among its members?
A. General Agreements on Tariffs and Trade
B. Organization of Economic Cooperation and Development
C. European Union
D. Latin American Free Trade Association