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First, there was a global trend in increased intra-industry trade.
Intra-industry trade refers to the exchange of similar products belonging to the same industry.
Hence, over the past three decades as intra-industry trade has developed many economists have looked at other explanations.
The Grubel-Lloyd index measures intra-industry trade of a particular product.
Intra-industry trade is difficult to measure statistically because regarding products or industries as "the same" is partly a matter of definition and classification.
See also Intra-industry trade.
Yes, intra-industry trade.
Erm, intra, intra-industry trade.
He developed the Heckscher-Ohlin-Ricardo model, which showed that even with constant returns to scale that intra-industry trade could still occur under the traditional setting.
The broader-based Latin American Free Trade Area appeared to increase intra-industry trade but had few other perceptible consequences.
Yet, Donald Davis believed that both the Heckscher-Ohlin and Ricardian models were still relevant in explaining intra-industry trade.
However, many economists have made the point of claiming that these models provide no explanation towards intra-industry trade as under their assumptions countries with identical factor endowments would not trade and produce goods domestically.
Adding to the problem of bridging economic theory with empirical results, some economists have pointed to the possibility of intra-industry trade not as the result of differentiated goods, but because of "reciprocal dumping."
One attempt to explain IIT was made by Finger (1975), who thought that occurrence of intra-industry trade was "unremarkable" as existing classifications place goods of heterogeneous factor endowments in a single industry.
Product differentiation and economies of scale as a new source of comparative advantage---a pillar of the extensive theory of "intra-industry trade", and of some more recent developments following the paper by Krugman in AER 1970.
Although the theory and measurement of intra-industry trade initially focused on trade in goods, especially industrial products, it has also been observed that there is substantial intra-industry trade in the international trade of services.
"Intra-industry trade has been considered in international trade literature as the explanation of the unexpectedly large expansion of industrial trade among OECD countries, for which it represented more than two-thirds of their total international trade by the beginning of the seventies."
The concept is therefore closely related to that of intra-industry trade, that being the export and import of the same items, but concerns changes in exports and imports between two points in time as opposed to their values at a given point in time.