A substantial amount of trade between industrialized countries is intraindustry or intrafirm trade rather than interindustry trade.

Question

Quizplus · Accepted Answer

Intraindustry trade refers to the exchange of similar types of products within the same industry, while intrafirm trade refers to trade between different branches or subsidiaries of the same company. Both types of trade are common between industrialized countries due to their specialization and interconnectivity.

A Substantial Amount of Trade Between Industrialized Countries Is Intraindustry