Question:
What is Trade Diversion?
Author: go kysAnswer:
-Refers to when a Preferential Trade Agreement leads to a Substitution of Imports from a more efficient Non-Member Nation with Imports from a Less Efficiency Nation -Diversion can occur due to Tariffs or quotas being introduced that favour Member Nations, which can disrupt the Flow of Trade.
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go kys![go kys](https://lh5.googleusercontent.com/-VcvAufixQC8/AAAAAAAAAAI/AAAAAAAAAAA/AMZuuclTgbVcwbkN34cKx-XDycscqf7VNg/s96-c/photo.jpg)