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International Cooperation and Intra-Industrial Transactions

Author

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  • Gilroy, Bernard Michael
  • Broll, Udo

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.

Suggested Citation

  • Gilroy, Bernard Michael & Broll, Udo, 1988. "International Cooperation and Intra-Industrial Transactions," MPRA Paper 18705, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18705
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    References listed on IDEAS

    as
    1. Solomon William Polachek, 1980. "Conflict and Trade," Journal of Conflict Resolution, Peace Science Society (International), vol. 24(1), pages 55-78, March.
    2. Broll, Udo & Gilroy, Bernard Michael, 1985. "Developing Countries in Light of Intra-Trade," MPRA Paper 18046, University Library of Munich, Germany.
    3. Balassa, Bela, 1986. "Intra-Industry specialization : A cross-country analysis," European Economic Review, Elsevier, vol. 30(1), pages 27-42, February.
    4. David Greenaway, 1983. "Intra-industry and inter-industry trade in Switzerland," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 119(1), pages 109-121, March.
    5. Gilroy, Bernard Michael & Broll, Udo, 1987. "West Germany - Expanding Where The Markets Are," MPRA Paper 18156, University Library of Munich, Germany.
    6. Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 451-471, June.
    7. Broll, Udo & Gilroy, Bernard Michael, 1986. "Comparative Advantage and Trade Patterns," MPRA Paper 18155, University Library of Munich, Germany.
    8. Gilroy, Bernard Michael, 1989. "Intra-firm Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 3(4), pages 325-343.
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    Cited by:

    1. Bernard Michael Gilroy, 1991. "Schweizerische Pflichtlagerhaltung und ihre Finanzierung," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 127(III), pages 431-443, September.

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    More about this item

    Keywords

    intra-industrial trade; consumer preferences; product differentiation; international trade; multinational enterprises;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F2 - International Economics - - International Factor Movements and International Business
    • F1 - International Economics - - Trade

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