Final answer:
Intra-industry trade refers to international trade of specialized goods within the same industry between similar countries. It allows firms to focus on specific parts of the value chain and promotes economic gains through specialized learning and economies of scale.
Step-by-step explanation:
Intra-industry trade refers to international trade of goods within the same industry. It involves the exchange of specialized goods between similar countries in the global economy.
Splitting up the value chain is a trend in international trade where different stages of producing a good are carried out in different geographic locations. This allows firms to focus on specific parts of the value chain and collaborate across borders.
Intra-industry trade between similar countries produces economic gains by promoting specialized learning and economies of scale.