Product differentiation results in
A)interindustry trade.
B)intraindustry trade.
C)no trade.
D)trade zones.
E)trade tariffs.

Name: Product differentiation results in A)interindustry trade. B)intraindustry trade. C)no trade. D)trade zones. E)trade tariffs.
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Question

Quizplus · Accepted Answer

Product differentiation leads to intraindustry trade because firms produce similar goods but with some differences, which leads to competition among them in the same industry. This competition in turn may result in trade between countries.

Product Differentiation Results in