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Why MERCOSUR is trade diversion and what are the impacts of MERCOSUR on firm operations?

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Answer:

MERCOSUR may have made trade more difficult.

Step-by-step explanation:

It is a trade divergence due to numerous reasons. It influences nations outside the association since they can't offer to those nations as effectively. The idea was to make a worker's union that would enable every nation to get off their feet and strengthen one another. Yet, it winded up harming one another and different nations for the reasons that it made the trade even more difficult than it was before. So, the impacts of MERCOSUR on firms operation are negative; it made trade more difficult, especially with other countries.

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