Our understanding of trade has not kept pace with its changing nature. Existing models, rooted in Ricardo's theories, describe trade between parties that offer different commodities and operate according to the logic of comparative advantage. Though this type of exchange does take place, intra-industry trade - international trade of the same or similar commodities, in which foreign and domestic brands compete - is increasingly prevalent. As a result, Intra-Industry Trade argues that our focus on the total volume of trade, rather its composition, is misplaced. Trade composition matters, not just because it gives us a fuller understanding of how trade works, but also because intra-industry trade increases the likelihood of peaceful relations and cooperation between states. To illustrate this point, the authors examine the effects of intra-industry trade on preferential trade agreements, its tendency to lessen World Trade Organization disputes and militarized conflict, and its ability to pave the way for new and fortified alliances. -- from back cover.