Intra-industry trade is most common in the trade patterns of

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Intra-industry trade refers to the exchange of goods within the same industry between countries. This is most common in industrialized countries with highly developed and diversified economies, such as those in Western Europe. These countries have a large number of industries producing similar or complementary products, leading to a high degree of intra-industry trade. Developing countries, raw material producers, and those specializing in labor-intensive products are more likely to engage in inter-industry trade, where they trade goods that are different from what they produce. China is an exception, as it has developed a highly diversified manufacturing sector and is involved in both intra- and inter-industry trade.

Intra-Industry Trade Is Most Common in the Trade Patterns of