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Draw, label, and explain one diagram illustrating a customs union that is trade diverting and in another diagram one that is trade creating.Assume the country
Draw, label, and explain one diagram illustrating a customs union that is trade diverting and in another diagram one that is trade creating.Assume the country has a tariff on imports from all countries before joining the customs union and then on all non-member countries after joining.Show domestic consumption, production, imports, prices, consumer and producer surplus, tariff revenues, and deadweight losses before and after the creation of each customs union.
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