Respuesta :
The correct option is A, Intra-industry trade between similar trading partners allows the gains from learning and innovation that arise when firms and workers specialize in the production of a certain product.
Intra-industry trade is a form of trade where a country exports and imports similar goods within the same industry. For example, a country may export cars and import car parts. This type of trade is usually associated with countries that have a high level of economic development and technological advancement, as it is often easier to produce goods in specialized fields. Intra-industry trade usually involves goods that are complementary, meaning that they are used in combination with one another to produce a final product.
Intra-industry trade can be beneficial to both countries involved by allowing them to specialize in the production of certain goods, which can lead to increased efficiency and lower production costs. It can also help to create competition between countries, which can help to drive down the prices of goods, benefiting consumers. Intra-industry trade is especially beneficial for developing countries, as it can provide them with access to goods that they would otherwise be unable to produce.
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Complete Question:
Intra-industry trade between similar trading partners allows the gains from ________________ that arise when firms and workers specialize in the production of a certain product.
a. learning and innovation
b. comparative advantage
c. relative advantage
d. creating the value chain
