The higher the value for the index of intra-industry trade:
A) the lower total trade is for other products.
B) the greater is the percentage of intra-industry trade in that good.
C) the more we should be concerned about job loss and outsourcing.
D) the higher the gains from trade.

Question

Quizplus · Accepted Answer

The index of intra-industry trade measures the percentage of trade that occurs within a single industry, indicating the level of specialization and efficiency within that industry. Therefore, a higher value for the index of intra-industry trade implies a greater percentage of trade occurring within that industry. Answer choices A, C, and D are not necessarily related to the index of intra-industry trade.

The Higher the Value for the Index of Intra-Industry Trade