The simultaneous export and import of automobiles by Canada is an example of
A) complete specialization
B) partial specialization
C) intrai-ndustry trade
D) interindustry trade

Question

Quizplus · Accepted Answer

The simultaneous export and import of automobiles by Canada is an example of intra-industry trade. Intra-industry trade refers to the trade that takes place between countries where they both produce and export similar products within the same industry. In this case, Canada is both exporting and importing automobiles, which indicates that it is engaged in intra-industry trade. Choices A and B are wrong because there is no specialization happening in this scenario, rather it is about trade in the same industry. Choice D is incorrect because interindustry trade refers to trade between different industries.

The Simultaneous Export and Import of Automobiles by Canada Is