In the H-O model, a country that exports one product and imports a different product is called inter-industry trade. Although there is substantial inter-industry trade in the world, Intra-industry trade is also important today. Interpret what intra-industry trade is and demonstrate it with a product with two (2) trading countries and show how they can benefit from it.

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A: Intra-industry trade refers to the exchange of similar products belonging to the same industry.

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Q: Q8

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