Final answer:
Intra-industry trade refers to the exchange of similar products or services between countries with similar characteristics and competitive advantages. The advantages of intra-industry trade include extreme specialization and learning in certain types of products, as well as economies of scale. Developing countries can acquire comparative advantage in new products or services by implementing policies that promote education, innovation, and a conducive business environment.
Step-by-step explanation:
Intra-industry trade refers to the exchange of similar products or services between countries that have similar characteristics and competitive advantages.
The advantages of intra-industry trade include extreme specialization and learning in certain types of products, as well as economies of scale that result from large companies competing across international borders.
Economies of scale play a significant role in driving competitiveness and trade. When companies can produce goods or services in large quantities, they can take advantage of lower production costs, which can lead to lower prices for consumers and increased competitiveness in the global market.
Developing countries can acquire comparative advantage in new products or services by implementing policies that promote investment in education and skills development, fostering innovation and technological advancements, and creating a conducive business environment that attracts foreign direct investment.