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Country Similarity Theory

Country Similarity Theory

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Published by Debasree Paul
Theory of Internatiomal Marketing
country similarity theory
Theory of Internatiomal Marketing
country similarity theory

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Published by: Debasree Paul on Aug 05, 2009
Copyright:Attribution Non-commercial

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12/04/2014

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ECONOMIC SIMILARITY OF DEVELOPEDCOUNTRIES:-
This theory suggests that intra-industry trade takesplace between the countries with similar levels of development.
According this theory, the companies that develop newproducts for the domestic market, export the products tothose countries that are at similar level of developmentafter meeting the needs of the domestic market.
 
According to Linder, the similarities in consumer preferences inthe countries that are at the same economic developmentprovide the scope for intra-industry trade among countries.example India and China
However mostly developing countries do not trade betweenthemselves as the surplus of most of these countries would beraw materials and agricultural products and their requirementswould be technology and high technology-oriented products.examle Vietnam and Ethioia.

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