Suppose That Imports and Exports in an Industry Are $100

Multiple Choice

Suppose that imports and exports in an industry are $100 million and $200 million, respectively. Will the index of intra-industry trade for this industry rise, fall, or remain unchanged if exports fall to $100 million?

A) It will rise.
B) It will fall.
C) It will remain unchanged.
D) There is not enough information to determine how the index will change.