![Distinguish trade creation and trade diversion Distinguish trade creation and trade diversion](https://digitalteachers.co.ug/wp-content/uploads/2022/09/Bbosa-Science.png)
Distinguish trade creation and trade diversion
Trade creation refers to a situation where as a result of economic integration, a country shifts the consumption of goods from high cost non-member countries to low cost member country.
Trade diversion is a situation where as a result of economic integration, a country shifts from the importation of goods from low cost non-member state to high cost member state.
CATEGORIES Economics
TAGS Dr. Bbosa Science