What is inter industry and intra-industry trade

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Distinguish horizontal foreign direct investment from vertical foreign direct investment.

A domestic industry has been able to prove that a foreign producer engaged in dumping. The foreign producer's counterargument is that it has charger higher prices in its home market simply because this is its profit-maximizing strategy in its home market where barriers to entry have given it monopoly pricing power, whereas it faces considerable competition in the domestic market and hence charges a lower price for its product in that market. Explain why this might be a reasonable economic argument, yet might do little to fend off the imposition of the antidumping penalties under current international antidumping rules.

What is Inter -industry and Intra-industry trade? How do economies of scale and product variety provide an explanation for Intra-industry trade?

Reference no: EM132281196

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