Intra-industry trade in differentiated products can be explained by
A) the product life cycle theory.
B) the principle of comparative advantage.
C) differences in per capita income.
D) overlapping demand segments in trading nations.

Question

Quizplus · Accepted Answer

Intra-industry trade in differentiated products can be explained by overlapping demand segments in trading nations. This means that different countries may have similar demand patterns and preferences for different types of products, leading to trade between countries in similar but differentiated products.

Intra-Industry Trade in Differentiated Products Can Be Explained by