15.8%

South Korea 3.8%

17.7%

12.6%

4.3%

13.6%

3.3%

TABLE 19.13 Top Trading Partners (November 2021) (Source:

https://www.census.gov/foreign-trade/statistics/highlights/

toppartners.html)

Moreover, the theory of comparative advantage suggests that each economy should specialize to a degree in
certain products, and then exchange those products. A high proportion of trade, however, is intra-industry

trade—that is, trade of goods within the same industry from one country to another. For example, the United

States produces and exports autos and imports autos. Table 19.14 shows some of the largest categories of U.S.

exports and imports. In all of these categories, the United States is both a substantial exporter and a

substantial importer of goods from the same industry. In 2021, according to the U.S. Census Bureau, the

United States exported $131 billion worth of autos, and imported $317 billion worth of autos. About 60% of
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