Upon Turkey's entering the European Union, suppose it is discovered that the

cost of widget production in Turkey is 400, while it is 500 in Germany.

Suppose the EU has X percent tariff on automobiles. The costs of production

in the USA are equal to S (valued in euros). Comment on whether EU

membership of Turkey would result in trade creation or trade diversion under

the following scenarios.

a- X = 30% and S = 450

b- X = 30% and S = 350

c- X = 50% and S = 350