Final answer:
The automobile and steel industries are interdependent as they supply and demand each other's products. Intra-industry trade offers the advantage of economies of scale and increased product variety.
Step-by-step explanation:
Two industries that are interdependent are the automobile industry and the steel industry. The automobile industry depends on the steel industry to supply the materials necessary for manufacturing vehicles, while the steel industry relies on the demand from the automobile manufacturers to sell its products. This interdependence means that a change in one industry, such as a technological advancement or a decrease in demand, can have a significant impact on the other.
Intra-industry trading refers to the exchange of similar products belonging to the same industry. Two advantages of intra-industry trade include increased variety of goods for consumers and the opportunities for businesses to specialize and take advantage of economies of scale. Economies of scale occur when the cost per unit of production decreases as the scale of production increases, which is facilitated by a larger market that intra-industry trade provides.