What is meant by intra industry trade?

Intra-industry trade refers to the exchange of similar products belonging to the same industry between countries. This phenomenon often occurs when countries export and import goods that are differentiated by factors such as brand, quality, or features, rather than trading entirely different products. It is common in industries like automobiles or electronics, where countries may specialize in certain models or components while still engaging in reciprocal trade. This type of trade can enhance consumer choices and promote efficiency through economies of scale.