Term:
Intra-industry trade
Definition:
Different types of trade are captured in measurements of intra-industry trade:
a) Trade in similar products (“horizontal trade”) with differentiated varieties (e.g. cars of a similar class and price range).
b) Trade in “vertically differentiated” products distinguished by quality and price (e.g. exports of high-quality clothing and imports of lower-quality clothing).
Domain:
Finance
Source:
OECD, 2005, Measuring Globalisation: OECD Handbook on Economic Globalisation Indicators, OECD, Paris - Glossary