intra-industry trade


Also found in: Acronyms, Wikipedia.

intra-industry trade

a situation where firms operating in the same industry but in different countries SPECIALIZE in particular products and engage in INTERNATIONAL TRADE. For example, in the textile industry a firm in the UK may specialize in the production and EXPORT of expensive mohair suits, while another firm in Taiwan may specialize in the production and export of cheap casual wear. Thus, Britain may export textile products to Taiwan and, by the same token, import textiles from Taiwan. See PREFERENCE-SIMILARITY THEORY (OF INTERNATIONAL TRADE), INTRA-INDUSTRY SPECIALIZATION.
Full browser ?