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What Is the Value of the Index of Intra-Industry Trade

Question 123

Multiple Choice

What is the value of the index of intra-industry trade for an industry in which exports are $100 million and imports are $200 million?

A) 100/300 = 0.33
B) (100 + 200) /100 = 3.00
C) 100/[1/2 · (100 + 200) ] = 0.67
D) 100/200 = 0.50

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