Question

true or false: relative to a global tariff, the effect of creating a customs union in luxembourg is positive. true false welfare effects of a regional trading arrangement are not always static. there are also dynamic gains that influence growth rates over the long run and offset unfavorable static effects due to trade diversion. which of the following represent dynamic gains from creating a customs union? check all that apply. the trade-creation effect greater competition market enlargement higher tariff revenues

Answer 1

True. The trade-creation effect, greater competition, market enlargement, and higher tariff revenues are all dynamic gains from creating a customs union in Luxembourg.

As per the question, the answer is given below:True or False: Relative to a global tariff, the effect of creating a customs union in Luxembourg is positive.FalseWelfare effects of a regional trading arrangement are not always static. There are also dynamic gains that influence growth rates over the long run and offset unfavorable static effects due to trade diversion. True. The trade-creation effect, greater competition, market enlargement, and higher tariff revenues are all dynamic gains from creating a customs union in Luxembourg.The following represent dynamic gains from creating a customs union:Trade-creation effectGreater competitionMarket enlargementHigher tariff revenuesThus, the correct answer is Trade-creation effect, Greater competition, and Market enlargement.