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Management · Q119

Foreign Trade Policy

Graduate and Post Graduate · Management · question 119

Q119

Statement I 'Trade Creation' and 'Trade Diversion' both have welfare implications. Statement II Regional partners should be competitive and not complementary, for the purpose of the most efficient use of economic resources within a Customs Union.

A.
Statement I is true, but Statement II is false
B.
Statement II is true, but Statement I is false
C.
Both statements are true
Answer
D.
Both statements are false

Answer: Option C

Solution

Answer: Option C
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