International Cooperation and Intra-Industrial Transactions
The paper examines theoretically the empirical observation or increasing levels of intra-industrial trade flows. The relationship between intra-industrial trade and consumer preferences in addition to product differentiation advanced by internationally active firms are discussed within the framework of a simple model of international trade in differentiated goods. In an international free trade scenario, ranking high in product differentiation and monopolistic market structures, the intensity of international trade activities steadily rises as the structure of consumer preferences exhibits demand pattern similarity: export and import levels rise simultaneously. Intra-industrial commodities exchanges as well as investment cross-hauling of multinational enterprises prove to be important vehicles international cooperation among nation.
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- Helpman, Elhanan, 1984.
"A Simple Theory of International Trade with Multinational Corporations,"
3445092, Harvard University Department of Economics.
- Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 451-71, June.
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- Broll, Udo & Gilroy, Bernard Michael, 1985. "Developing Countries in Light of Intra-Trade," MPRA Paper 18046, University Library of Munich, Germany.
- Gilroy, Bernard Michael, 1989. " Intra-firm Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 3(4), pages 325-43.
- Broll, Udo & Gilroy, Bernard Michael, 1986. "Comparative Advantage and Trade Patterns," MPRA Paper 18155, University Library of Munich, Germany.
- David Greenaway, 1983. "Intra-industry and inter-industry trade in Switzerland," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 119(1), pages 109-121, March.
- Balassa, Bela, 1986. "Intra-Industry specialization : A cross-country analysis," European Economic Review, Elsevier, vol. 30(1), pages 27-42, February.
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