International Cooperation and Intra-Industrial Transactions

Bernard Gilroy and Udo Broll

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: intra-industrial trade; consumer preferences; product differentiation; international trade; multinational enterprises (search for similar items in EconPapers)
JEL-codes: F1 F2 F4 (search for similar items in EconPapers)
Date: 1988
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Citations: View citations in EconPapers (1)

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