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Commerce · Q467

Business Environment and International Business

Graduate and Post Graduate · Commerce · question 467

Q467

Match List-I with List-II relating to benefits and cost of economic integration and identify the option representing correct matching. List-I List-II a. Trade creation 1. Movement of production and resources in opposite directions. b. Trade diversion 2. Become active when a member country does not augment export but simply shifts its imports from low cost source to high cost source. c. Trade deflection 3. Shifting the locus of production from high cost to low cost centre within the union. d. Polarisation forces 4. Goods produced in a third country entering a free trade area through a member country having lower tariff.

Match List-I with List-II relating to benefits and cost of economic integration and identify the option representing correct matching.
List-I List-II
a. Trade creation 1. Movement of production and resources in opposite directions.
b. Trade diversion 2. Become active when a member country does not augment export but simply shifts its imports from low cost source to high cost source.
c. Trade deflection 3. Shifting the locus of production from high cost to low cost centre within the union.
d. Polarisation forces 4. Goods produced in a third country entering a free trade area through a member country having lower tariff.
A.
a-2, b-3, c-4, d-1
B.
a-2, b-4, c-1, d-3
C.
a-3, b-1, c-4, d-2
Answer
D.
a-3, b-2, c-1, d-4

Answer: Option C

Solution

Answer: Option C
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