When trade blocs or countries reduce tariffs between each other—through a free trade agreement, for instance—new trade flows often emerge: firms purchase from partners whose costs suddenly become competitive.
Source: https://www.investopedia.com/terms/t/trade-creation.asp
Matching tools and partners
You might also be interested in these terms
Free · No password · Never a paywall. Weekly top news and facts from logistics.
Share your knowledge, ask follow-up questions, or add practical insights to this page. Every contribution is moderated before publication.