Which trade instrument has the European Union used to insulate its producers and consumers of agricultural goods from the impact of changing demand and supply conditions in the rest of the world?
A. Domestic content regulations
B. Variable import levies
C. Voluntary export quotas
D. Orderly marketing agreements
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Assume that the formation of a customs union turns out to include the lowest-cost world producer of the product in question. Which effect could not occur for the participating countries?
A. Trade creation-production effect
B. Trade creation-consumption effect
C. Trade diversion
D. Scale economies and competition
Which organization of nations permits free trade among its members in industrial goods, while each member maintains freedom in its trade policies toward non-member countries?
A. European Union
Benelux
Council for Mutual Economic Assistance
D. North American Free Trade Association
Which of the following organizations is considered a regional trading arrangement?
A. Organiaztion of Petroleum Exporting Countries
B. North Atlantic Treaty Organization
C. Benelux
D. International Tin Agreement
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