Chapter20: Growth And Less Developed Countries
Section: Chapter Questions
Problem 11SQP
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Question
What is the relationship between product differentiation and intraindustry trade?
Why would intraindustry trade occur between developed and developing countries?
Expert Solution
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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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