Intra-industry trade is the trade of products belonging to the same industry. In
ID: 1106103 • Letter: I
Question
Intra-industry trade is the trade of products belonging to the same industry. Inter-industry is the trade of products belonging to different industries. Intra-industry trade occurs among countries with similar land-labor ratios and comparative advantages. Alternatively, inter-industry trade occurs among countries with different land-labor ratios and comparative advantages.
a) Pick 3 countries you would expect Canada to do intra-industry trade with and explain your reasoning.
b) Pick 3 countries you would expect Canada to do inter-industry trade with and explain your reasoning.
Explanation / Answer
1)US
2)EU
3)CHINA
Because they have almost same market, taste of people. Hence, similar types of goods and services are exchanged.
B) Inter-industry trade is a trade of products that belong to different industries. For instance, the trade of agricultural products produced in one country with technological equipment produced in another country can be classified to be an inter-industry trade. Countries usually engage in inter-industry trade according to their competitive advantages.
1)india
2) japan
3) switzerland.
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