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Basic Question 3 of 6

When lower-cost imports from non-member countries are replaced with higher-cost imports from members, ______ occurs.

A. trade creation
B. a trade deficit
C. trade diversion

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

explain motivations for and advantages of trading blocs, commonmarkets, and economic unions

CFA® 2025 Level I Curriculum, Volume 1, Module 6.