trade creation การใช้

• The skeptics are also influenced by new research examining the risk that productivity-sapping trade diversion will outweigh productivity-enhancing trade creation.
• Opposite to economically efficient trade creation effect, the trade diversion flow is cost-inefficient compared with the rest of the world.
• Formulation of economic integration theory has been initiated by Jacob Viner who described trade creation and trade diversion effects caused by economic integration.
• Viner is further known for having added the terms " trade creation " and " trade diversion " to the canon of economics in 1950.
• Southpoint is positioned to play a niche role in the expanding intra-ASEAN trade, especially to exploit the " trade creation " effects following the entry of AFTA.
• Balance between trade creation and trade diversion effects due to the creation of economic union makes the union either economically efficient ( positive balance ) or inefficient ( negative balance ).
• Economic theory suggests that bilateral agreements like the FTA will lead to trade creation between the parties directly involved, but will also cause trade diversion from third countries, offsetting any benefits.
• The findings suggest an increase in intraregional trade that is largely the result of trade diversion, not trade creation, with some aggregate welfare benefits in Kenya and Tanzania but welfare losses in Uganda.
• Trade diversion ( trade diversion may surpass trade creation benefits if it destroys domestic production by more effective international companies or in case of higher taxes imposing to third key trade partner countries );
• This was called trade creation : the benefits to the supply side as a whole accrue as resources are reallocated towards firms producing at the highest comparative advantage ( among the partners ) in each country.
• It is based on the fact that unification of states usually applies mergers of more than 1 sector in economy ( even European Coal and Steel Union, which had 2 sectors only ) leading to the creation of either trade creation or diversion effects.
• Hence, trade creation's essence is in elimination of customs tariffs on inner border of unifying states ( usually already trading with each other ), causing further decrease of price of the goods, while there may be a case of new trade flow creation of the goods between the states decided to economically integrate.
• The dynamics of trade creation and diversion effects was mathematically described by R . T . Dalimov . The finding shows that trade flow ( an output moving from region to region ) may be described by Navier-Stoxes equation, with the goods flow caused by the price difference-quite similar to gas or liquid moving under pressure difference.