While, intra-industry trade is “two-way trade of like goods” (Krugman et al., 2015). Therefore, intra-industry trade is “not based on comparative advantage” (Krugman et al., 2015). The main difference between inter-industry and intra-industry trade is that inter-industry trade occurs because of comparative advantage, while intra-industry trade occurs because of lower costs resulting from economies of scale and wider variety of products for consumers. For example, there is intra-industry trade in the US automotive sector (Turkcan and Ates, 2010). Turkcan and Ates (2010) point out that the increase in outsourcing in the automotive sector has increased intra-industry trade; outsourcing has allowed manufacturers to obtain components from the “best suppliers,” which results in “lower unit costs.” They also indicate that companies “benefit from economies of scale” when they outsource (Turkcan and Ates, 2010). Another difference is that, since monopolistic competition cannot predict which country will import and export in intra-industry competition, differentiation of goods can create a comparative advantage that can determine which country will import and export a certain variety of goods. For example, Japan mainly produces family cars, such as Toyota, while Germany mainly produces sports cars, such as Audi; therefore, Germany will have a lower unit cost for sports cars and Japan will have a lower unit cost for family cars (Dudovskiy, 2012). In