In addition, as part of trade diversion, the importing country loses the customs revenue it has collected for imports that now come from its duty-free bloc partner. The consumer in the importing partner wins because the imported goods are no longer dependent on customs fees; However, the benefit of the consumer is necessarily less or equal to the shortfall in tariffs, so that the nation as a whole is doing less well. Thus, the diversion of trade harms both the importing country and the rest of the world. These losses are greater than the benefits to the bloc member who obtains exports due to traffic diversions. If trade diversion is more important than the creation of trade, the formation of the customs union or the free trade agreement would reduce global well-being. If the creation of trade is more important, global well-being will be strengthened. As a result, companies in certain sectors, such as electronics and chemicals, have become multinationals and have begun to buy and produce parts and materials in a number of countries. Every time these parts and materials cross a border, an international commercial operation has taken place; and then, when the last property is exported, there is another international trade transaction. What resulted in exports growing faster than production, is that companies have evolved from domestic development to a multinational, and now many have developed to a global development. The first six GATT trade negotiations had reduced tariffs in industrialized countries to less than half that level by the end of the Kennedy round in 1967, down from an average of 40% after the Second World War. In addition, international communications and transportation had improved considerably (the first commercial jet crossed the Atlantic in 1958 and the first commercial telecommunications satellite was launched in 1965. Non-tariff barriers such as import quotas, subsidies, standards and regulations must be converted into tariff equivalents, which is often difficult and unreliable.

In new areas of trade negotiations, such as services, investment and intellectual property, efforts to measure the impact of barriers are becoming even more difficult. Pugel, T.A. (2009). International Economics (14th Ed., boarding school. student ed). Boston, Mass.: McGraw Hill/Irwin. [16] A good source of business data and an explanation of the data systems used is the Census Bureau`s foreign trade statistics website, At the time of Smith, Ricardo and Hecksher-Ohlin, businesses were generally small and most international trade was made in agricultural or mineral products or in small production.