intra-industry trade


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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.
References in periodicals archive ?
The share of intra-industry trade remains high in this sector, with interdependence between the big Asian, North American and European players, and the top importers typically also feature among the top exporters of ICT goods.
Intra-industry trade patterns adjusted, allowing for a smooth adjustment to the new trade environment.
Harmonizing the trade rules between existing sub-regional trading blocs would generate prospects for increased intra-industry trade and the formation of regional value chains.
There exists a potential for boosting intra-industry trade between Pakistan and ASEAN in several product segments most notably knitted or crocheted fabrics, articles of apparel and clothing accessories, made up textiles and leather products.
Irina Chernykh- Chief Research Fellow, Kazakhstan Institute for Strategic Studies under the President of Republic of Kazakhstan presented her speech on 'Potential and Prospects of Intra-Industry Trade in the Region'.
* growth of intra-industry trade through regional value chains and development of geographically based specialisation
This hypothesis posits that if intra-industry trade dominates in the economy, the adjustment costs arising from the processes of economic opening or induced by changes in trade patterns will be lower.
The focus is on exchanging concessions in such areas where the strengths of the two countries complement each other, thereby encouraging intra-industry trade. Since the signing of FTA with China back in 2006, Pakistan managed to avail only five percent of the concessional lines, while Chinese imports enjoyed 57 percent of tariff concessions.
The objective of this paper is to look into the current development of foreign trade between the EU and Russia based on an analysis of selected indices (including revealed comparative advantages, intra-industry trade and trade intensity) and the possibility of further mutual development of foreign trade relations as a result of globalization changes taking place in the world economy.
The answer to the overall growth in trade openness for the UK may be found in intra-industry trade. (7) Overall trade openness among the EU6 grew (from roughly 35 percent in 1958 to 50 percent in 1973) but intra-industry trade increased substantially more.
Keywords: international trade, trade pattern, comparative advantage, New Trade Theory, intra-industry trade, inter-industry trade, Grubel-Lloyd index, metalworking sector.

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