Trade Diversion

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:

    No king on earth is as safe in his job as a Trade Union official. There is only one thing that can get him sacked; and that is drink. Not even that, as long as he doesn’t actually fall down.
    George Bernard Shaw (1856–1950)

    Without [diversion] we would be in a state of weariness, and this weariness would spur us on to seek a more solid means of escaping from it. But diversion amuses us, and leads us unconsciously to death.
    Blaise Pascal (1623–1662)