The simultaneous import and export of computers by Germany is an example of
A) intra-industry trade.
B) inter-industry trade.
C) perfect competition.
D) imperfect competition.

Question

Quizplus · Accepted Answer

The graph shows a market for gasoline in a small nation, which is not relevant to the import and export of computers by Germany. The concept of intra-industry trade involves the exchange of similar products within the same industry among different countries, which is exactly what is happening with the import and export of computers by Germany. Therefore, the correct answer is A) intra-industry trade. The other choices, B) inter-industry trade, C) perfect competition, and D) imperfect competition, are not applicable to the given scenario.

The Simultaneous Import and Export of Computers by Germany Is