Suppose that industry X and industry Y have intraindustry
Trade indexes equal to 0.80 and 0.20, respectively.Which of the
Following is then correct?
A)There is a greater share of intraindustry trade in industry X than in industry Y.
B)There is a greater share of intraindustry trade in industry Y than in industry X.
C)Industry X and industry Y have equal shares of intraindustry trade.
D)There is no intraindustry trade in either industry X or industry Y.

Question

Suppose that industry X and industry Y have intra­industry
Trade indexes equal to 0.80 and 0.20, respectively.Which of the
Following is then correct?
A)There is a greater share of intra­industry trade in industry X than in industry Y.
B)There is a greater share of intra­industry trade in industry Y than in industry X.
C)Industry X and industry Y have equal shares of intra­industry trade.
D)There is no intra­industry trade in either industry X or industry Y.

Quizplus · Accepted Answer

Industry X has an intra-industry trade index of 0.80, indicating that 80% of its trade is intra-industry trade. Industry Y has an intra-industry trade index of 0.20, indicating that only 20% of its trade is intra-industry trade. Therefore, industry X has a greater share of intra-industry trade than industry Y.

Suppose That Industry X and Industry Y Have Intra­industry

Suppose That Industry X and Industry Y Have Intraindustry