Which of the following is an example of intraindustry trade?
A)The United States imports some vehicle models from Canada, while exports other vehicle models to Canada.
B)Japan buys computers from both the United States and China.
C)Chinese residents buy computers made in different factories across China.
D)Mexico exports banana to the United States, while the United States exports corn to Mexico.
E)Canada and Mexico import wheat from the United States, but not from each other.

Question

Quizplus · Accepted Answer

Intraindustry trade refers to the exchange of goods within the same industry between countries. In option A, the United States and Canada trade vehicle models within the same industry, thus making it an example of intraindustry trade. The other options involve trade in different industries or among different countries.

Which of the Following Is an Example of Intraindustry Trade