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3. (10 points) Answer the following intra-industry trade questions: a. How can a country get any economic gains from importing and exporting the same product

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3. (10 points) Answer the following intra-industry trade questions: a. How can a country get any economic gains from importing and exporting the same product or good, for e.g., cars? (4 points) b. Using the table below, answer the following questions: i. Which country engages the most in intra-industry trade? (2 points) ii. Which country/ countries has/have increasing intra-industry trade? (2 points) 111 Which country/ countries has/have a stable intra-industry trade? (2 points) Manufacturing intra-industry trade as a percentage of total manufacturing trade Country 1980s 1990s 2000s U.K. 0.635 0.653 0.685 Germany 0.538 0.539 0.537 France 0.759 0.776 0.775 Canada 0.428 0.395 0.369 Mexico 0.625 0.744 0.734

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