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3. Intra-Industry Trade Index Suppose that country A has only three categories of traded goods and that As exports and impor
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Answer #1

Intra trade industry index is given by

T = 1 -  |X-M|/(X+M)

X = exports = 150

M = imports = 200

T = 1 -  |150 - 200|/(150+200)

= 1 - 50/350

= 1 - 1/7  

= 6/7  

= 0.8571

So, country A has high intra industry trade  

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