Q. A trade-creating customs union is one where: (Solved)
1. lower-cost imports from outside the customs union are replaced by higher-cost imports from a union member
2. some domestic production in a member nation is replaced by lower-cost imports from another member nation
3. trade among members increases but trade with nonmembers decreases
4. trade among members decreases while trade with nonmembers increases
- d. trade among members decreases while trade with nonmembers increases