When there is balanced (exports equal imports) intra-industry trade in a certain product, the index of intra-industry trade is:
A) 0.00.
B) 0.25.
C) 0.50.
D) 1.00.
E) 2.00.

Question

Quizplus · Accepted Answer

The index of intra-industry trade is calculated as 1 - (|exports - imports| / (exports + imports)). When exports equal imports, the formula simplifies to 1 - (0 / (exports + imports)) = 1.00, indicating a perfectly balanced intra-industry trade.

When There Is Balanced (Exports Equal Imports) Intra-Industry Trade in a Certain