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If you have any questions, you are always welcome to contact us. We'll get back to you as soon as possible, withing 24 hours on weekdays.
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IntraIndustry Trade calls for us to rethink what trade most often looks like and how it shapes global institutions, fostering peace among states. Cameron G. Thies and Timothy M. Peterson argue that our understanding of trade has not kept pace with its changing nature in the 21st century; existing models, rooted in Ricardo's theories, regard trade uniformly as taking place between entities and countries that offer different commodities and operate according to the logic of comparative advantage. Though this type of exchange does take place, intraindustry tradeinternational trade of the same or similar commodities, in which foreign and domestic brands competeis increasingly prevalent. The authors argue that our current academic and policymaking focus on the total volume of trade, rather than its composition, is misplaced. Trade composition matters, not just because it gives us a fuller understanding of how trade works, but also because intraindustry trade increases the likelihood of positive institutional relations and cooperation between states. To illustrate their point, the authors examine the effects that intraindustry trade has on Preferential Trade Agreement formation, its tendency to lessen World Trade Organization disputes and militarized conflict, and its ability to pave the way for new and fortified alliances.
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