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Intra-Industry Trade

Intra-industry trade refers to the exchange of similar or related products within the same industry between countries. This can include the exchange of finished goods, as well as intermediate goods that are used as inputs in the production of other products.

Intra-industry trade is often facilitated by the specialization of countries in the production of certain types of goods or the use of certain technologies, and it can be an important source of economic growth and development.

For example, a country may specialize in the production of a particular component of a product, and then export that component to other countries where it is used in the final assembly of the product. This type of trade can lead to increased efficiency and competitiveness within the industry.

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