Trade Diversion versus Trade Creation in Joining a Trade Bloc: US Market for Imported Compact Cars
(Figure 11.2)

A gain from trade creation (in this case the extra 5,000 cards). Trade creation is the net volume of new trade created by forming the trade bloc. It causes the national gain shown as area b. Press "Show trade creation" to show the area on the graph. Area b represents two kinds of gain in the British economy: gains on extra consumption of the product, and gains on replacement of higher-cost British production by lower-cost partner production.
Press "Continue" when you are ready to move on. The "Reset" button will clear the graph.