“…The existence of a negative relationship between the geographical distance and the intensity of intra-industry trade is confirmed by empirical studies (see, for instance, Cieślik, 2000;Botrić, 2013). As shown by empirical research, the cultural community of trading countries, in particular, a common or similar language, national identity, tradition and history, facilitate the development of intra-industry trade (Ekanayake, 2001;Mulenga, 2012). This is mainly due to easier communication, lower transaction costs and similarity in the structure of demand.…”