Upon Poland’s entering the European Union, suppose...

Upon Poland’s entering the European Union, suppose it is discovered that the cost of automobile production in Poland is €20,000 while it is €30,000 in Germany. Suppose the EU, which has a customs union, has an X percent tariff on automobiles and the costs of production are equal to Y (valued in euros) in Japan. Comment on whether the addition of Poland to the European Union would result in trade creation or trade diversion under the following scenarios: a. X = 50%, and Y = €18,000 b. X = 100%, and Y = € 18,000 c. X = 100%, and Y = € 12,000