The internationalization of production has increased enormously during the last decades. Simultaneously, the rate of intra-firm trade has grown rapidly. Unfortunately, research in the context of intra-firm trade is still very scarce. Although, most economists agree upon the fact that there exist solid economic as well as commercial reasons for intra-firm trade. Transactions between and within firms are the results of complex processes which are motivated by strategic and economic thoughts. The study analyses intra-firm trade, that is the estimated one-third of world trade which is transacted between affiliated parties. As firms realize the increasing potential for integrating their operations throughout the world, they are contributing to signiflcant shifts in the patterns of international trade and industrial development. As emphasized here, international trade is inextricably linked to the growing and substantial share of transactions between affiliated parties conveyed through multinational enterprises.
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- David Greenaway, 1987. "Intra-Industry Trade, Intra-Firm Trade and European Integration: Evidence, Gains and Policy Aspects," Journal of Common Market Studies, Wiley Blackwell, vol. 26(2), pages 153-172, December.
- Gilroy, Bernard Michael, 1989. " Intra-firm Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 3(4), pages 325-43.
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