Intra-industry trade occurs when a country tends to export one good and imports a wholly different type of good from another country.A. TrueB. False

4. When a country both exports and imports a type of commodity, the country is engaged inA) inter-industry trade.B) an attempt to monopolize the relevant industry.C) increasing returns to scale.D) intra-industry trade.E) imperfect competition

Trade between two or more than two countries is known as ________.a.External Tradeb.International Tradec.Unilateral Traded.Internal Business

Intra-industry trade will tend to dominate trade flows when which of the following exists?A) large differences between relative country factor availabilitiesB) small differences between relative country factor availabilitiesC) uneven distribution of abundant resources between two countriesD) homogeneous products that cannot be differentiatedE) constant cost industries

Suppose two countries are identical in their factor endowments. Both would like to consume passenger cars and commercial vehicles, industries with economies of scale. In the absence of trade, each country would have both industries. If they could trade, both could benefit by specialising and taking advantage of economies of scale to lower their production costs.Assume that once trade becomes possible, country A specialises in producing passenger cars, and country B specialises in producing commercial vehicles. a) Explain why we would expect to observe trade in similar products, known as intra-industry trade, when production technology is characterized by economies of scale. [10 points]b) Try to reflect on who are the "winners" and "losers" from international trade in this example [10 points]  View keyboard shortcutsEditViewInsertFormatToolsTable12ptParagraph

A product is produced in a monopolistically competitive industry with scale economies. If thisindustry exists in two countries, and these two countries engage in trade with each other, then wewould expectA) the country with a relative abundance of the factor of production in which production of theproduct is intensive will export this product.B) the countries will trade only with other nations they are not in competition with.C) the country in which the price of the product is lower will export the product.D) neither country will export this product since there is no comparative advantage.E) each country will export different varieties of the product to the other.