Countries Engage in Intra Industry trade because of its
- Both the businesses and consumers benefit from this trade.
- It increases the variety of products in the same Industry.
- Provides varieties of differentiated products with in
- Businesses benefit from Economies of scale.
- They benefit from the competitive advantages.
- Producing specific type of products is more comparitive
advantage than producing different types of products.
- Assists Economy during Economic Fluctuations.
- Intra-Industry trade will result in price Equalization.
- It helps in maintaining Economic stability.
- Promotes Innovations.