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Intra-Industry Trade

Intra-Industry Trade

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Published by Prashant Rampuria

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Published by: Prashant Rampuria on Mar 05, 2010
Copyright:Attribution Non-commercial

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03/05/2010

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Intra Industrial Trade
 
Introduction
Intra-industry trade occurs when acountry exports and imports goodswithin the same industry or productgroup such as exporting autos andimporting autos
In this type of trade the goodsexchanged are not perfectsubstitutes, but are similar types of goods with different levels of qualityi.e. Differentiated products
 
Intra-Industry TradeIndex
X-MIntraindustry Trade Index=1-X+M
Where
X = value of exports
M = value of imports

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