Intra-firm trade
Intra-firm trade: international trade conducted between units of the same company. The bulk of this type of trade is conducted between units of multinational enterprises. Estimates of the size of intra-firm trade differ, but studies suggest that it may account for about one-third of total trade. Some commentators see intra-firm trade as a form of managed trade on the assumption that a multinational enterprise would rather purchase from its own units, even if a cost difference is involved, than using the open market. Opinion on this proposition remains divided. See also globalization.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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