The intra-industry trade index:
A) ranges from 0 to 1.
B) is 0 when all trade in the industry or product group is intra-industry trade.
C) is 1 when all trade in the industry or product group is interindustry trade.
D) is calculated by subtracting total imports from total exports.
E) cannot be accurately calculated.

Question

Quizplus · Accepted Answer

The intra-industry trade index measures the extent of intra-industry trade (trade of similar products) within an industry. It ranges from 0 to 1, where 0 indicates that all trade is interindustry (between different industries) and 1 indicates that all trade is intra-industry (within the same industry).

The Intra-Industry Trade Index