International Trade and Enterprise

Running head: INTERNATIONAL TRADE AND ENTERPRISE
INTERNATIONAL TRADE AND ENTERPRISE
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1INTERNATIONAL TRADE AND ENTERPRISE
Table of Contents
Executive Summary...................................................................................................................2
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................4
2.1. Background.....................................................................................................................4
2.2. Intra-industry trade or two-way trade.............................................................................4
2.2.1 Case study of Pakistan..............................................................................................5
2.3. Inter-industry trade..........................................................................................................7
2.3.1. Case study of European Union.................................................................................8
2.4. Intra-industry or Inter-industry?......................................................................................9
3. Conclusion............................................................................................................................10
References:...............................................................................................................................11

2INTERNATIONAL TRADE AND ENTERPRISE
Executive Summary
International trade has become very common in the modern days of increased
globalisation and internationalisation. Since the past two centuries, trade has significantly
increased and has completely transforming the economy of the whole world. In present days,
about one-fourth of the entire production in the world is exported to other countries. It is very
important to understand this transformation and this transformative process as trade has
generated significant gains and the same time, has also have made some distributional
outcomes. Many new concepts and features have been developed by the scholars and
researchers world-wide in relation to international trade and two of them are the inter-
industry trade and the intra-industry trade. This research paper has elaborated on discussing
about these two concepts with a special emphasis on two chosen countries, namely Pakistan
and the European nations. It has shed light on how these two concepts have benefitted the
world trade and which one is more prevalent over other. It is seen from the analysis that
under the present high instances of globalisation and internationalisation, the intra-industry
trade has today turned into a very important component of the activities of global macro-
economic that is highly beneficial. It has resulted in stimulation of the process of innovations
and at the same time, has produced a significant variety and proportions of goods and
products world-wide that has further led to increase in the general knowledge of the people
regarding innovation and the role of technology. Both these types of trade have played
important roles are played by economic modifications of the nations.

3INTERNATIONAL TRADE AND ENTERPRISE
1. Introduction
The forces of globalisation and internationalisation took place in 1980s and came into
effect all the features of day to day life. This concept generally refers to the migration of
features all across the borders (Bourn 2018). The surpassing forces belong to the fields of
technology, politics, culture and economics. Notwithstanding all these facts, all these issues
are vital and important roles are played by economic modifications that are generated by the
elements of globalisation and it is due to the economy of a country that is influenced by the
international context and would generate notable influence on the national growth and
stability. In this contemporary world of globalisation, there are increasing instances of
international trade that are taking place in between the industrialised countries (Baylis, Smith
and Owens 2017). Globalisation has brought in immense changes that are next to countless.
However, the most significant and relevant ones in terms of the economies are the opening of
the liberalisation and the borders of the global markets. All these modifications have resulted
in the implementation of many classical economic principles like suggested by Adam Smith
about the reduction of political interventions within market place and the theory of David
Ricardo about the comparative advantage. Above all, it is to note that this has also led to the
creation of some open International Trade of capitals, migration of the resources,
commodities and even technologies.
Global trade has always captured the attention of many scholars and researchers and a
significant proof of this stands the wide palette of researchers and writings on the matters of
international and global trade. Many new concepts and features have been developed. Inter-
industry trade and the intra-industry trade are two of these new concepts. This research paper
is going to elaborate on discussing about these two concepts with a special emphasis on two
chosen countries- Pakistan and European Union.