Question 30 (0.5 points) The index of intra-industry trade is calculated as: the minimum of imports and exports divided by the average of imports and exports. the maximum of imports and exports divided by the sum of imports and exports. imports divided by exports. imports plus exports divided by the average of imports and exports.
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It is calculated as: $$IIT = \frac{(X + M) - |X - M|}{X + M} = 1 - \frac{|X - M|}{X + M}$$ where X is the value of exports and M is the value of imports in a particular industry. The index ranges from 0 to 1. A value of 0 indicates that there is no intra-industry Show more…
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