Which of the following is NOT a result of trade creation?
A)Lower costs tend to lead to higher demand for goods.
B)Buyers can acquire goods and services at lower cost.
C)Consumers are faced with a wider selection of goods.
D)Imported goods are available at higher prices.

Question

Quizplus · Accepted Answer

Trade creation refers to the creation of new trade opportunities between two countries that result in the production of goods at a lower cost than before. This generally leads to lower prices for consumers, a wider variety of goods to choose from, and an increase in demand. However, imported goods should not be available at higher prices as a result of trade creation, but rather at lower prices. Therefore, option D is not a result of trade creation.

Which of the Following Is NOT a Result of Trade