ABSTRACT
This chapter examines some of the determinants of intra-industry international production within the context of a general paradigm of international economic involvement. First, it presents a typology of inter-country economic transactions. Second, it suggests an analytical framework by which the extent and character of these transactions can be identified and explained. Third, in arguing that intra-industry production has common features with other forms of international commerce - and particularly those of intra-industry trade and inter-industry production - it uses a building-block approach to hypothesizing about recent trends in this kind of multinational enterprise (MNE) activity (Erdilek, 1982). Fourth, it looks at some empirical evidence of the extent and pattern of the intra-industry capital stake between a number of advanced industrialized countries and the rest of the world.
