The Trade Intensity Index Is the Ratio of __________

question 13

Multiple Choice

The trade intensity index is the ratio of __________.

• A) intraregional trade share relative to global trade
• B) intraregional trade share relative to the region's share in global trade
• C) interregional trade share relative to global trade
• D) one TNC's share of intraregional trade relative to another TNC's share

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Definitions:

PPI

Producer Price Index, a measure of the average change over time in the selling prices received by domestic producers for their output.

Basket of Goods

A set of products or commodities compiled for the purpose of monitoring price changes in the market over time.

Nominal Interest Rate

The stated interest rate on a loan or financial product, not adjusted for inflation, reflecting the actual rate charged or paid.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on savings.