This paper looks at how competition between companies in different industries affects international trade. Companies decide how much to invest in production capacity and set prices. Depending on the benefits of investing in capacity, some industries act like price-cutting rivals while others act like quantity-setting rivals. The study shows that changes like globalization and new technology can shift the balance between these types of competition, affecting which industries are more or less competitive. This, in turn, can impact the wages of skilled and unskilled workers in countries with similar levels of development.