Question

How can there be any economic gains for a country from both importing and exporting the same good, like cars?

Short answer

Intra industry trade helps the firms and workers to learn, innovate and improves its value chain.

Step-by-step solution

.Meaning Intra Industry trade.

It is refers to the exchange of similar products belonging to the same industry. The term is generally applied where the same types of goods or services are both imported and exported i.e. the international trade.

Step 2. Result when country starts importing and exporting the same goods.

a) It allows workers and firms to learn and innovate on particular products.

b) It allow firms to focus on very particular parts of the value chain.

c) With this intra-industry trade, firms and workers become more efficient and its efficiency will starts gaining.