Principles of Microeconomics / Unit 16 MIC 1508 short lesson, about 20 seconds
Intra-Industry Trade
Captions available
The idea
Much rich-country trade is with other rich countries in the same industry, cars for cars. Two explanations: learning in particular products, and economies of scale, which fall up to a point. Trade delivers scale and variety at once.
In practice
Design in one country, components in another, assembly in a third.
Where people slip
Advantage built on learning and scale can be built and lost.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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