Question

Do consumers benefit from intra-industry trade?

Short answer

Yes, the consumers will benefit from intra- industry trade.

Step-by-step solution

Step 1. Definition

Trade of similar products belonging to the same industry is known as intraindustry trade.

In international trade, it refers to situation where same types of products are both exported and imported.

Step 2. Explanation

Yes, the consumers get great profits and benefits from Intra- industry trade because now the prices they get are lower than before and they have a large variety of products to choose from. This happens because now the products are offered by many firms that’s why competition is increases and quality also increases so the consumer is benefitted from all sides.