The simultaneous export and import of airplanes by the United States is an example of
A)increasing returns to scale.
B)imperfect competition.
C)intraindustry trade.
D)interindustry trade.

Question

Quizplus · Accepted Answer

Intraindustry trade refers to the simultaneous export and import of goods within the same industry, and the example given of airplanes being both imported and exported by the United States fits this definition. This type of trade is characterized by the exchange of differentiated products, and is often seen in industries with high R&D intensity and economies of scale.

The Simultaneous Export and Import of Airplanes by the United