Explain the intra industry trade and difference between intra industry and inter industry trade.
Explanation of Solution
The trade takes place within the similar industries is known as the intra industry trade. The differentiated products produced by
When two or more products traded internationally, it is known as the inter industry trade. One can explain it through the theory of
Want to see more full solutions like this?
Chapter 5 Solutions
Pearson eText International Economics -- Access Card
- Why have intellectual property rights (IPRs) become a major issue in recent rounds of international trade negotiations? Check all that apply. IPR regulations vary across nations. Developing nations produce more inventions than developed countries. Poorer developing nations often have little incentive to provide patent protection to the products they need. There is a lack of enforcement of international IPR agreements.arrow_forwardWhat are examples of distributive and integrative negotiation?arrow_forwardMutually beneficial trade is also called OA. self-sufficiency. OB. a zero- sum game. OC. international subsidization. OD. involuntary trade. O E. voluntary trade.arrow_forward
- Identify four major crude oil traders in the world and the percentage of the market share.arrow_forwardWhat can be the current trade status of the US amongst other countries during COVID-19 pandemic? Economically speaking, would it be more beneficial or would it do more harm than good? Justify your answer.arrow_forwardMicroeconomics is the study of: The gains from trade since we can only consume what we produce (autarky) FIrm profits driving demand for inputs HH and firms exploiting productivity gains from specialization through trade (exchange) Household welfarearrow_forward
- Explain: a) Mercantilism b) Heckscher-Ohlin c) National Competitive advantagearrow_forwardAnalyze and explain when a firm should consider expanding from strictly domestic trade to international trade. What should it consider when becoming further involved in international trade?arrow_forwardhow do I draw a comparisn between Mercantilism as an economic system with Adam Smith’s invisible hand principles as regards international trade?arrow_forward
- Use graphs andT-accounts to illustratethe distinctions betweenthe effects of sterilizedand unsterilized interventions on foreignexchange marketsarrow_forwardIf two parties trade based on comparative advantageand both gain, in what range must the price of thetrade lie?arrow_forwardCloth (yard) Rice (bushel) China 70 40 Japan 90 60 (Numbers in the above matrix reflect labor hours per unit of output) What is the oppronity cost of this matrix? Please show your calculation. What trade would you recommend?arrow_forward
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
- Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning