What is the relationship between product differentiation and intraindustry trade?

MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter20: Growth And Less Developed Countries
Section: Chapter Questions
Problem 11SQP
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What is the relationship between product differentiation and intraindustry trade?

Why would intraindustry trade occur between developed and developing countries?

 

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The market is a location where the transaction of services and commodities takes place. It is important in making decision because the firm is interested in knowing their competitor. The market determines the price of commodities and services.

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