Product Differentiated is what companies use to make us choose one product form all the others options. A good example is a car marketing. Japan imports cars from the United States and exports cars to it. Why does it happen? If two countries are equivalents in their production and they have similar technologies available, we can see them exchanging the same goods or goods in the same industry category, like cars. We call it two-way trade based on product differentiation, it means, it is a better deal more than one-way trade based on the advantages.
