trade diversion

trade diversion definition - business

trade diversion

In international trade, a change in the sources of origin for a country's imports caused by adjustments in trade practices. For example, government quotas imposed on car imports from Asia shift demand to importing additional vehicles manufactured in Europe.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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