Hi, I am looking for someone to write an article on a inter industry and intra industry trade the hackescher-ohlin model Paper must be at least 3500 words. Please, no plagiarized work! On the other hand, the intra industry trade refers to the exchange of the products of the same kind of products and services between different countries. The intra industry trade could occur between the countries that have similar relative amount of factor of production whereas the inter industry trade occurs between the countries that have different production factors. Intra industry trade results in the economies of scale and allows lower cost of production while providing the customers wide range of choices. It is not focused on gaining competitive advantage. The standard industrial classifications have provided the estimated that around 25 percent of the volume of world trade has been contributed by the intra industry trade.
The inter industry trade is the trade between the countries where the export and import of different types of goods and services occur between the countries. The inter industry trade us based upon the differences on the production factors held by the industries of different countries. The countries export the products that they could produce in relative large amount due to intensive capital whereas they import the products that they could not produce themselves due to lack of intensive capital and production factors required for the production of these products. The inter industry trade does not include the exchange of goods between the countries in the same classification.
The intra industry trade refers to the trade of the goods and services of the same classification between the countries.