- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 6. International Trade
- Subject 3. Trading Blocs, Common Markets, and Economic Unions
CFA Practice Question
When lower-cost imports from non-member countries are replaced with higher-cost imports from members, ______ occurs.
B. a trade deficit
C. trade diversion
A. trade creation
B. a trade deficit
C. trade diversion
Correct Answer: C
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