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On the Benefit of Intra-industry Trade Under Different Internal Division

Xu Da

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Abstract

With the emergence of diversified production and the requirement of developing the scale economy, intra-industry trade has been gradually taking the place of the traditional inter-industry trade and becoming the main trend of modern international trade. Its development not only brings trade benefit to trade countries but also prompts the technological progress and industrial promotion. But in different division systems benefit gained by different countries in trade is not equal. From this perspective the author analyses the intra-industry trade's benefit and brings forward rational strategies in the short run and in the long run to develop intra-industry trade in our country in order to raise the level of our country's intra-industry trade.

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What this paper is about

With the emergence of diversified production and the requirement of developing the scale economy, intra-industry trade has been gradually taking the place of the traditional inter-industry trade and becoming the main trend of modern international trade. Its development not only brings trade benefit to trade countries but also prompts the technological progress and industrial promotion. But in different division systems benefit gained by different countries in trade is not equal. From this perspective the author analyses the intra-industry trade's benefit and brings forward rational strategies in the short run and in the long run to develop intra-industry trade in our country in order to raise the level of our country's intra-industry trade.

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Available abstract

With the emergence of diversified production and the requirement of developing the scale economy, intra-industry trade has been gradually taking the place of the traditional inter-industry trade and becoming the main trend of modern international trade. Its development not only brings trade benefit to trade countries but also prompts the technological progress and industrial promotion. But in different division systems benefit gained by different countries in trade is not equal. From this perspective the author analyses the intra-industry trade's benefit and brings forward rational strategies in the short run and in the long run to develop intra-industry trade in our country in order to raise the level of our country's intra-industry trade.

Key concepts: Intra-industry trade, Order (exchange), Division of labour, Trade barrier, Promotion (chess), International trade, Economic integration, Economics

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