Intra-industry trade:
A) tends to be associated with differentiated products.
B) is never associated with vertically differentiated products.
C) rarely occurs between developed and developing countries.
D) can be dismissed as a data issue.
E) does not occur among developed countries.

Question

Quizplus · Accepted Answer

Intra-industry trade often involves the exchange of similar but differentiated products, which can be distinguished by brand, quality, or other features, rather than entirely different categories of goods. This type of trade is common among countries with similar levels of economic development, allowing them to benefit from economies of scale and consumer preferences for variety.

Intra-Industry Trade