Suppose the U. S. imports wool from low-cost producer New Zealand. If the U. S. signed a regional trade agreement with Britain (assume Britain produces wool at a higher cost than New Zealand) that lowers tariffs on British wool, it is possible that the U. S. might switch to importing wool from Britain. Such an outcome illustrates the potential for regional trade agreements to A. bring about "Trade Creation" which is beneficial to the world economy. B. bring about "Trade Diversion" which is harmful to the world economy. C. bring about no differences in "Trade Creation" and "Trade Diversion". D. bring about "Trade Diversion" and "Trade Creation" at the same time, and hence not really matter in this case.