Intra-industry trade occurs when a country tends to export one good and imports a wholly different type of good from another country.A. TrueB. False

Answer: B. False

Intra-industry trade refers to the exchange of similar types of goods or services between countries, rather than the exchange of completely different products. This type of trade typically occurs in industries where products are differentiated, such as automobiles or electronics, where a country might export cars of a particular brand while simultaneously importing cars of another brand from different countries.

The essence of intra-industry trade lies in the specialization of production and the appeal of diverse product varieties within the same industry. It contrasts with inter-industry trade, where distinct goods are traded; for instance, exporting agricultural products while importing machinery. Therefore, the statement that intra-industry trade occurs when exporting one good and importing a wholly different type of good is incorrect, thus making the answer "False".