On the one hand this raises the question why
Germany is (at least partially) exporting cars in exchange for importing cars instead of
focusing exclusively on so-called inter-industry trade, namely exporting cars in exchange
for importing different types of goods (such as food or airplanes). On the other hand, this
raises the question why different goods are lumped together in the same sector, as the
exported Volkswagen Golfs differ from the imported Ferraris. We address these two
basic questions below.