Since the welfare effects of intra-industry trade are difficult to calculate we can safely presume that they are extremely small.

Question

Quizplus · Accepted Answer

The difficulty in calculating the welfare effects of intra-industry trade does not imply that these effects are extremely small; it simply indicates the complexity of the analysis. Intra-industry trade can have significant welfare benefits, including increased variety of goods for consumers and gains from specialization.

Since the Welfare Effects of Intra-Industry Trade Are Difficult to Calculate