Trade diversion happens instead of importing from most efficient country, a country import goods from nation within a preferential trade agreement, with higher production costs instead of importing from most efficient country within a preferential trade agreement, a country imports from the world's most efficient producer, violating the agreement a country imports the same good from several different countries, instead of focusing on one or few countries alone a country exports the same good from several different countries, instead of focusing on one or few countries alone

Option (A) is correct.

Explanation:

There are two terms in international economics; Trade creation and Trade diversion.

When some countries engaged in a particular economic integration then they have to agree upon various tariff rates. Trade diversion means that an economic integration or a free trade area diverts the trade from the most productive or efficient producer outside the economic integration towards the less productive or efficient producer inside the free trade area.

Types of economic integration:

(1) Preferential trade agreement

(2) Free trade agreement

(3) Custom unions

(4) Common Market

(5) Economic Union

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.