Members of the EU find that trade creation|| is fostered when their economies are ?
Correct answer: A. highly competitive
- A. highly competitive
- B. highly noncompetitive
- C. small in economic importance
- D. geographically distant
Explanation
Trade creation is more likely when member economies are highly competitive because integration replaces inefficient domestic production with lower-cost production by a partner. Geographic distance and small economic size generally reduce this potential.
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