Which of the following is FALSE about intraindustry trade?
A)Intraindustry trade creates gains from trade.
B)Intraindustry trade is due to comparative advantage.
C)Intraindustry trade may involve heightened competition and lower prices for consumers.
D)Intraindustry trade increases consumer choice.

Question

Quizplus · Accepted Answer

Intraindustry trade is not necessarily due to comparative advantage, but can also be the result of economies of scale, product differentiation, and transportation costs.

Which of the Following Is FALSE About Intraindustry Trade