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Explain the theory of trade creation and trade diversion

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Reference no: EM133273939

With the use of an appropriate diagram, illustrate and explain the theory of trade creation and trade diversion (static effects), using the example of the FTA between Canada (home country) and the United States (foreign country).

Please explain clearly to compare before and after the implementation of the CUSFTA, to derive at the trade creation and diversion effects.

Reference no: EM133273939

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