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A trade-creating customs union is one where: A. lower-cost imports from outside the customs union are replaced by higher-cost imports from a union member. B.

A trade-creating customs union is one where:

A.

lower-cost imports from outside the customs union are replaced by higher-cost imports from a union member.

B.

trade among members decreases while trade with nonmembers increases.

C.

trade among members increases but trade with nonmembers decreases.

D.

some domestic production in a member nation is replaced by lower-cost imports from another member nation.

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