Suppose that imports and exports in an industry are $100 million
And $200 million, respectively.Will the index of intraindustry
Trade for this industry rise, fall, or remain unchanged if exports
Fall to $100 million?
A)It will rise.
B)It will fall.
C)It will remain unchanged.
D)There is not enough information to determine how the index will change.

Question

Suppose that imports and exports in an industry are $100 million
And $200 million, respectively.Will the index of intra­industry
Trade for this industry rise, fall, or remain unchanged if exports
Fall to $100 million?
A)It will rise.
B)It will fall.
C)It will remain unchanged.
D)There is not enough information to determine how the index will change.

Quizplus · Accepted Answer

The Answer is B

Suppose That Imports and Exports in an Industry Are $100