Question: fLL 2 -G 0 0 2 4 6 8 10 12 14 16 18 20 QUANTITY (Pairs of gloves) Suppose Portugal forms a customs union

\fLL 2 -G 0 0 2 4 6 8 10 12 14 16 18 20 QUANTITY (Pairs of gloves) Suppose Portugal forms a customs union with France. The customs union results in the trade creation effect of $ and the trade diversion effect of $ The overall welfare of Portugal If, instead, Portugal forms a customs union with Germany, the result will be a customs union. The welfare of Portugal will by an amount equal to a effect of $

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