Definition: Intra-industry trade

Category: Foreign direct investment

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). http://ec.europa.eu/eurostat/ramon/statmanuals/files/OECD_Handbook on_Eco_Glob_Indicators.pdf