Intra-industry trade takes place:

Question

Quizplus · Accepted Answer

Intra-industry trade takes place primarily to take advantage of economies of scale. This allows firms to specialize in certain production processes and to lower costs through the use of specialized capital and labor resources. While products may be homogenous within an industry, this is not the primary reason for intra-industry trade. Additionally, while intra-industry trade can occur under perfect competition, it is not limited to this form of market organization.

Intra-Industry Trade Takes Place