What is the value of the intraindustry trade index for an
Industry in which exports are $100 million and imports are $100
Million?
A)100/200 = 0.50
B)(100 + 100)/100 = 2.00
C)100/[1/2 × (100 + 100)] = 1.00
D)(100 - 100)/100 = 0.00

Question

What is the value of the intra­industry trade index for an
Industry in which exports are $100 million and imports are $100
Million?
A)100/200 = 0.50
B)(100 + 100)/100 = 2.00
C)100/[1/2 × (100 + 100)] = 1.00
D)(100 - 100)/100 = 0.00

Quizplus · Accepted Answer

The intra-industry trade index is calculated as the ratio of the smaller value of exports and imports to the larger value, multiplied by 100. In this case, the smaller value is $100 million, and the larger value is also $100 million. Therefore, the intra-industry trade index is 100/[(1/2) x (100+100)] = 1.00. Choice C is the correct answer.

What Is the Value of the Intra­industry Trade Index for an

What Is the Value of the Intraindustry Trade Index for an