Question

In terms of efficiency, trade diversion is a _____ desirable outcome of a regional free-trade agreement, because trade is diverted from the _____ producer to the _____ producer.

Answer 1

Answer: The correct answer are "less", "low cost" and "high cost".

Explanation: In terms of efficiency, trade diversion is a less desirable outcome of a regional free-trade agreement, because trade is diverted from the low cost producer to the high cost producer.