Static effects: Short-term effects (shift of production) Trade creation: shift from (high-cost) domestic production to (low-cost) a member production Trade diversion: shift from (low-cost) non-member production to (high-cost) member production
Static effects: Short-term effects (shift of production)Trade creation: shift from (high-cost) domestic production to (low-cost) a member productionTrade diversion: shift from (low-cost) non-member production to (high-cost) member production