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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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, intraindustry 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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