Ch6_2 - Name Date 1 When imports and exports for the same...

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Name: ___________________________________ Date: ______________ 1. When imports and exports for the same type of good are nearly equal: A) the laws of comparative advantage break down. B) it is an indication that nearly all the trade is “intra-industry.” C) exports are probably just “finished” in the nation instead of being fully sourced there. D) there is a very low level of intra-industry trade. 2. The calculation that tells us the proportion of trade in each product involving both imports and exports is: 3. The index of intra-industry trade is calculated as: 4. Suppose that industry X and Y have intra-industry trade indexes equal to 0.80 and 0.20, respectively. Which statement below is correct? 5. For which product below would you expect the index of intra-industry trade to be lowest? A) golf clubs B) automobiles C) whiskey D) natural gas Page 1
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6. If the index of intra-industry trade is high, products are probably ______, and costs in both nations are ______. 7. 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? 8. What is the value of the intra-industry trade index for an industry in which exports are $100 million and imports are $100 million?
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