Inter-industry trade

Inter-industry trade is a trade of products that belong to different industries. For instance, the trade of agricultural products produced in one country with technological equipment produced in another country can be classified to be an inter-industry trade. Countries usually engage in inter-industry trade according to their competitive advantages. inter-industry trade stimulates innovation in industry, and can assist the economy in cases of short-term economic fluctuations.

Sources:

Handjiski, B, Lucas, R, Martin, P & Guerin, SS, 2010, Enhancing Regional Trade Integration in Southest Europe, World Bank Publications