Trade between Similar Economies
Countries with similar economies are more likely to trade with one another, especially if they are at a similar development level, have political or security partnerships, or have cultural ties. Why might that be? Consider that qustion as you read this section, and then answer the questions at the end of the section.
Glossary
- intra-industry trade
- international trade of goods within the same industry
- splitting up the value chain
- many of the different stages of producing a good happen in different geographic locations
- value chain
- how a good is produced in stages