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What are the two main sources of economic gains from intra-industry trade?
There are basically two economic benefits of intra-industry trading i.e. gains from specializationwhich happens because every production has many processes involved and it is very muchpossible that one country could have specialization in certain process which gives themcomparative advantage there, another gain is due to economies of scale which helps them lowerthe cost of production when country is concentrating production in only few parts of good.
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Chapter 19
International Trade
Introduction
How Markets Work
Markets and Welfare
The Economics of the Public Sector
Topics for Further Study
Choi C.
April 14, 2021
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this question. Assets with the two main sources of economic games from intra industry trade are we know that we see again and specialization because we know production has a large number of processes involved. Therefore, many countries choose to specialize in certain areas. For example, many of the goods that the U. S. Has are made in China. For example. However, we get a lot of our fruit from neighboring countries such as Mexico, where we got avocados from bananas from and other South American countries as well. All these countries, their specialized in these given areas, have a comparative advantage there. This is one of the game's Another gain is because we have the economy, and the scale to which the economy grows and exists means that this can lower the cost of production forgiven Good when you're only focusing on a few specific areas because when you're spending so much money and resource is in so many different areas like tech out agriculture, all these different areas, it's overall greater costs to you than just focusing on one area. So one example can be so those that specialization and then the scale of the economy and how big it is, how many
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