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Match List-I with List-II relating to benefits and cost of economic integration and identify the option representing correct matching.
| List-I |
List-II |
| a. Trade creation |
1. Movement of production and resources in opposite directions. |
| b. Trade diversion |
2. Become active when a member country does not augment export but simply shifts its imports from low cost source to high cost source. |
| c. Trade deflection |
3. Shifting the locus of production from high cost to low cost centre within the union. |
| d. Polarisation forces |
4. Goods produced in a third country entering a free trade area through a member country having lower tariff. |
Answer & Solution
Correct Answer:
Option
C
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