What does trade diversion mean?

Definitions for trade diversion
trade diver·sion

This dictionary definitions page includes all the possible meanings, example usage and translations of the word trade diversion.


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Wiktionary

  1. trade diversionnoun

    The changing of import sources as a result of political agreeements, rather than to increase mutual benefit.

  2. Etymology: * Credited to Jacob Viner in his 1950 book The Customs Union Issue.

Wikipedia

  1. 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. Total cost of good becomes cheaper when trading within the agreement because of the low tariff. This is as compared to trading with countries outside the agreement with lower cost goods but higher tariff. The related term Trade creation is when the formation of a trade agreement between countries decreases the price of the goods for more consumers, and therefore increases overall trade. In this case the more efficient producer with the agreement increases trade.The terms were used by 'old' Chicago School economist Jacob Viner in his 1950 paper The Customs Union Issue.

Freebase

  1. 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.

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Numerology

  1. Chaldean Numerology

    The numerical value of trade diversion in Chaldean Numerology is: 5

  2. Pythagorean Numerology

    The numerical value of trade diversion in Pythagorean Numerology is: 1

Examples of trade diversion in a Sentence

  1. Gabriel Felbermayr:

    The strong dollar is one of the macroeconomic side effects of Trump's trade policy towards China. It leads to trade diversion.


Translations for trade diversion

From our Multilingual Translation Dictionary

  • வர்த்தக திசைதிருப்பல்Tamil
  • వాణిజ్య మళ్లింపుTelugu

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"trade diversion." Definitions.net. STANDS4 LLC, 2023. Web. 30 Nov. 2023. <https://www.definitions.net/definition/trade+diversion>.

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