Intraindustry trade occurs among industries producing homogeneous products.

Question

Quizplus · Accepted Answer

Intraindustry trade occurs among industries producing similar or homogeneous products. This type of trade is based on product differentiation and specialization leading to international trade between countries producing similar products within the same industry. For example, in Europe, there is a significant amount of intraindustry trade in the automobile industry as different countries specialize in producing specific types of cars.

Intraindustry Trade Occurs Among Industries Producing Homogeneous Products