Use the following to answer question 12: Table: Imports and Exports of Commoditi
ID: 1094463 • Letter: U
Question
Use the following to answer question 12:
Table: Imports and Exports of Commodities Within U.S. Industries
Product
Value of Imports ($million)
Value of Exports ($million)
Golf Clubs
$305.8
$318.7
Large passenger aircraft
7000
18,821.5
Fax machines
271.8
150.2
Men's shorts
701.3
12.1
12.
(Table: Imports and Exports of Commodities Within U.S. Industries) Which of the following is the intra-industry trade index for large passenger aircraft?
A)
129.10%
B)
54%
C)
2.56%
D)
42%
Product
Value of Imports ($million)
Value of Exports ($million)
Golf Clubs
$305.8
$318.7
Large passenger aircraft
7000
18,821.5
Fax machines
271.8
150.2
Men's shorts
701.3
12.1
Explanation / Answer
""B""
What is the intra-industry trade index for large passenger aircraft?
The intra-industry trade index is defined as
min(imports, exports)/[1/2(imports + exports)].
Substitute imports = 7000 and
exports =
18821.5 to get
min(7000, 18821.5)/[1/2(7000 + 18821.5)] = 7000/12910.75 = 0.54.
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