1) What is intra-industry trade? To which countries does the
Krugman model apply? - Intra-industry trade is trade between
industrial countries. 2) What are economies of scale? Describe the
number and size of firms in an industry with large “internal”
economies of scale. 3) What are the other two characteristics of
the Krugman model? Give examples. 4) What potential industrial
policies can government enact to foster growth of industries with
economies of scale? 5) Explain the product cycle hypothesis.
Differentiate between inter –industry and intra -industry trade
and discuss why an increasing proportion of world trade today
involves the exchange of differentiated products. (250 words)
Define the concept of intra-industry trade and explain briefly
why increasing returns to scale in production, along with consumer
tastes for variety in consumption, help explain this kind of
trade.
Research of the intra-industry trade contents the
trade volume, value, industries, trends, comparison with
inter-industry trade of exact two countries and some other related
issues about Myanmar and China
How is Intra-firm trade different from Intra-industry trade? Why
might US firms be interested in investing abroad, setting up
affiliates, producing parts and components of their products, and
import from their own affiliates? Wouldn't it be easier to allow a
foreign firm to produce the components and export those to the US?
Provide your answer in light of John Dunning's OLI theory. Clarify
your answer by using the example of the American Apparel
manufacturers who get their garments made abroad...
What are the benefits to similar economies from intra-industry
trade? Select all that apply.
1.Focus on one part of a value chain
2.High degree of specialization
3.Domestic monopolies
4.Economies of scale