Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 20: Q 24. (page 494)

Do consumers benefit from intra-industry trade?

Short Answer

Expert verified

Of course yes consumers are benefitted from Intra industry trade.

Step by step solution

01

Step 1. Definition

Intra-industry trade is defined as the situation where countries interchange or exchange alike products which relate to the same industry.

02

Step 2. Explanation

Consumers are benefitted from Intra industry trade because in this there is a large number of firms providing the same goods so consumers have a huge variety to choose from. Due to the huge competition, the quality of goods increased. Because of all these situations, the cost comes down which is in favor of the consumer and he or she also gets the improved quality of goods and services.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Does intra-industry trade contradict the theory of

comparative advantage?

From earlier chapters you will recall that technological change shifts the average cost curves. Draw a graph showing how technological change could influence intra-industry trade.

Can a nation’s comparative advantage change over

time? What factors would make it change?

Look at Exercise 20.2. Compute the opportunity costs of producing sweaters and wine in both France and Tunisia. Who has the lowest opportunity cost of producing sweaters and who has the lowest opportunity cost of producing wine? Explain what it means to have a lower opportunity cost.

What factors does Paul Krugman identify that

supported expanding international trade in the 1800s?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free