Mobility of production factors in intra-industrial trade
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Abstract
The objective of the study is based on analyzing the scope of intra-industrial trade in potential contexts that industries face in international trade, as well as the mobility of production factors. The problem that originates the investigation is the limitation of the model of free movement of goods between countries. The methodology is based on the application of factorial equations, the result of the research obtained several results, one of them is the advantage that the local company obtains when it is capital intensive, which results in r-w=(1,42), because the workers take advantage of their relative scarcity; while *r-w** foreign company gains one worker (1,12). As a conclusion, it is established that industries with an in-tensive knowledge component are the ones that decide if they have free factor mobility.
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