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Suppose Canada and Brazil agree to create a two-country free trade area (FTA). If Brazilian exports were to replace U.S. exports to Canada as a

Suppose Canada and

Brazil

agree to create a two-country free trade area (FTA). If

Brazilian

exports were to replace U.S. exports to Canada as a result of the new FTA, this would be called

A.

trade creation.

B.

aquota.

C.

trade diversion.

D.

antidumping.

E.

reciprocity.

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