intra-industry trade

Show Summary Details

Quick Reference

Trade where goods of the same classification are both imported and exported. Intra-industry trade is a consequence of imperfect competition: firms with monopoly power sell to every country in which there is a profit margin. Intra-industry trade is contrasted with inter-industry trade, which arises from differences in resources between countries, so that a type of good is normally exported or imported, but not both.

Subjects: Economics.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.