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Supply Chain Manager Exam Prep

Category - Global Management

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Excluded countries can experience a reduction in their exports because of the trade diverting effect of a ___________.

Explanation

Answer: A - Excluded countries can experience a reduction in their exports because of the trade diverting effect of a PTA. These countries can then be tempted to resort to protectionism as the relative size of their import-competing sector increases, reducing the chances for multilateral liberalization.

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