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

A welfare loss from trade diversion (in this case, from the 10,000 cars). Trade diversion is the volume of trade diverted from low-cost outside exporters to higher-cost bloc-partner exporters. It causes the national loss shown as area c. Press "Show trade diversion" to show this area on the graph.
Press "Continue" when you are ready to move on. The "Reset" button will clear the graph.