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trade diversion

noun

Etymology

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

Definitions

  1. The changing of import sources as a result of political agreements, rather than to…

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

    • Even if trade diversion is not important in aggregate terms or in relation to trade creation between the bilateral partners, it still represents an inefficient use of global resources[…]
    • First, the lowering of trade barriers among members leads to trade diversion from outside suppliers to firms in member countries[…]
    • An excessive increase in the share of intraregional flows is typically taken as an indication that trade diversion has been predominant and the regional integration programme has been welfare-reducing.

The neighborhood

Vish — recursive loop

No curated loop yet for trade diversion. Loops are being traced one word at a time while the ingestion pipeline matures.

sense glosses and etymology drawn from English Wiktionary · source · CC-BY-SA