Abstract

Industrial organization refers to the way firms make an industry. The four types of industrial organization are competition, monopoly, monopolistic competition, and oligopoly. These are examples of each industry in international trade. Up to this point in the text, industries have been competitive with many firms producing a homogeneous product. The present chapter examines the influence of different types of industrial organization on international trade. Topics in this chapter include:• Price searching firms and international markets• Intraindustry trade and product categories• Oligopolies and trade• Technology, product cycles, increasing returns to scale

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