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INTRA-INDUSTRY TRADE MEASURE (Chapter 5)Good j Country ABC exports to and imports from other countries, in the industries j= 1, 2, ..., 6.
Export of j Import of j
Total exports Total imports
1 1/4 1/4
2 1/4 1/4
3 0 1/4
4 ¼ 0
5 1/4 1/4
6 0 0
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i. Are there an intra-industry trades in any of the six industries? Explain.
ii. Which trades are balanced in the six industries?
iii. Calculate the IIT index for intra-industry trade. What do explain this number?
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