4.3.2.4c - Costs and benefits of membership of a trading bloc: • trade creation • trade diversion

Costs and benefits of membership of a trading bloc:; trade creation; trade diversion; costs and prices; economies of scale; transaction costs; movement of factors of production.

Use c - costs and benefits of membership of a trading bloc: • trade creation • trade diversion to connect the rule to the data and decision in the question.

This matters because c - costs and benefits of membership of a trading bloc: • trade creation • trade diversion determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - costs and benefits of membership of a trading bloc: • trade creation • trade diversion to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Costs and benefits of membership of a trading bloc: • trade creation • trade diversion is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.