Теория

New Trade Theories

Content
1. Intra-industry trade.
2.Imperfect Competition and International
Trade.
3.Trade based on dynamic technological
differences among nations.

1. Intra-industry trade

 B.Balassa, P.Krugman, K.Lancaster
 The importance of intra-industry trade

becomes apparent when tariffs and other
obstructions to the flow of goods and
services among EU-country were removed –
1968.

Intra-industry trade

 A large portion of the output of modern

economies involves differentiated rather than
homogeneous product.
 As a result, a great deal of international trade
can and does involve the exchange of
differentiated products of the same industry
or broad product group –
 intra-industry trade.

Cont.
 Intra-industry trade arises in order to take

advantage of important economies of scale in
production.
 International competition forces each firm in
industrial countries to produce only one, or at
most a few varieties and styles of the same
product.
 The nation then imports other varieties of the
product.

Cont.
 Comparative advantage seems to determine

the patterns of inter-industry trade while
economy of scale in differentiated products
give rise to intra-industry trade.
 Both types of international trade occur in
today’s world

Intra-industry trade
- main features
1.