Intraindustry trade relies on
A)economies of scale.
B)the product cycle.
C)differences in factor endowments.
D)government industrial policies.
E)monopoly pricing.

Question

Quizplus · Accepted Answer

Intraindustry trade relies on economies of scale, which means that firms can increase production and lower their costs by producing a larger quantity of their products or by specializing in a particular type of production. This is particularly relevant in industries where there are high fixed costs, such as in the manufacturing of cars or electronics.

Intraindustry Trade Relies on