Understanding Trade Agreements: Creation, Diversion, and Types
Classified in Geography
Written on in English with a size of 3.02 KB
Trade Diversion and Creation
Trade diversion: A shift in the pattern of trade from low-cost world producers to higher-cost CU or FTA members.
-e: trade diversion
Trade creation: An expansion in world trade that results from the formation of a preferential trade arrangement.
B+d: trade creation
Rules of Origin in Regional Economic Integration
Define rules of origin and which form of regional economic integration requires them.
Rules of origin are required in Free Trade Areas to avoid trade deflection and prevent export companies from outside the FTA from benefiting unfairly. These rules are the criteria established to determine the national source of a product. They are important because duties and restrictions often depend upon the source of imports.... Continue reading "Understanding Trade Agreements: Creation, Diversion, and Types" »