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 ?
growth of intra-industry trade through regional value chains and development of geographically based specialisation
The focus is on exchanging concessions in such areas where the strengths of the two countries complement each other, thereby encouraging intra-industry trade.
The pattern of vertical specialization in the region is characterized by a large and rapid expansion on back-and-forth transactions in parts and components (henceforth, IPC) in the form of 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.
However, in international trade in the real world, there is more intra-industry trade than inter-industry trade, particularly with regard to intra-industry trade between similar countries (especially with regard to manufactured products).
On the Measurement of Changes in Product Quality in Marginal Intra-Industry Trade.
Using value-added trade flows, the author found that trade structures in GMS countries are characterized by extra-regional interdependence in global value chains, whereas intra-industry trade has been sharply increasing and is reflected in deepening structure of value chain specialisation.
Substantial flows of intra-industry trade based on product differentiation, exports of goods intensive in nations relatively scarce and expensive factors (the so called Leontief paradox), trade based on technological gaps, trade based on economies of scale and product cycles looked-for a new explanation (Krugman 2000, Helpman 1999, Duchin 1990).
A newer generation of trade models emphasizes product differentiation and variation in consumer tastes to reconcile the fact that a substantial volume of trade across countries is intra-industry trade.
Omran urged the need to increase the volume of intra-industry trade and infrastructure projects and develop the international road link of Cairo and Johannesburg.
The structure and evolution of the exports and imports of Romania in the last years have indicated an increase in the intra-industry trade, and concurrently, a shift towards the commerce in predominantly capital-intensive commodities.

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