Answer to Question 1
It does not disprove these theories, but it does present difficulties. Clearly, both theories would seem to imply that trade should be interindustry. Some intraindustry trade can be explained by transport costs or by data classification problems. The intraindustry trade that remains suggests the need for broader theories that incorporate such factors as increasing returns to scale and goods that are imperfect substitutes.
Answer to Question 2
FALSE