Trade diversion is an economic term related to international economics in which trade is diverted from a more efficient exporter towards a less efficient one by the formation of a free trade agreement or a customs union.
Read more about Trade Diversion: Occurrence, Term, Downside, Example
Famous quotes containing the words trade and/or diversion:
“With respect to a true culture and manhood, we are essentially provincial still, not metropolitan,—mere Jonathans. We are provincial, because we do not find at home our standards; because we do not worship truth, but the reflection of truth; because we are warped and narrowed by an exclusive devotion to trade and commerce and manufacturers and agriculture and the like, which are but means, and not the end.”
—Henry David Thoreau (1817–1862)
“[F]rom Saratoga [N.Y.] till we got back to Northampton [Mass.], was then mostly desert. Now it is what 34. years of free and good government have made it. It shews how soon the labor of man would make a paradise of the whole earth, were it not for misgovernment, and a diversion of all his energies from their proper object, the happiness of man, to the selfish interests of kings, nobles and priests.”
—Thomas Jefferson (1743–1826)