After a short overview of the foreign trade relations of Switzerland, the present paper examines the trade flows between Switzerland and the Third World. Furthermore, it deeply investigates Swiss export stability as well as the amounts of foreign direct investment (FDI) abroad.

The approach focussed on allows one to examine theoretically the empirical observation of increasing levels of intra-industry trade flows founded upon an increasing similarity of technology between countries and firms. Within the framework of a simple model of international trade in...