Trade Diversion versus Trade Creation in Joining a Trade Bloc: UK Market for Imported Compact Cars
(Figure 12.2)

In Figure 12.2A, the British could buy Japanese cars at £5,000 if there were no tariff. Press "Show Japanese price" to show this price on the graph. The next cheapest alternative is to buy German cars delivered at £5,500. Press "Show German price" to show this price on the graph. If there were free trade, at point C, Britain would import only Japanese cars and none from Germany. Press "Show point C" to show this point on the graph.
Press "Continue" when you are ready to move on. The "Reset" button will clear the graph.