Suppose That Industry X and Industry Y Have Intra-Industry Trade

question 36

Multiple Choice

Suppose that industry X and industry Y have intra-industry trade indexes equal to 0.80 and 0.20, respectively. Which of the following is then correct?

• A) There is a greater share of intra-industry trade in industry X than in industry Y.
• B) There is a greater share of intra-industry trade in industry Y than in industry X.
• C) Industry X and industry Y have equal shares of intra-industry trade.
• D) There is no intra-industry trade in either industry X or industry Y.

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Definitions:

SWOT Analysis

The step of strategic planning in which the managers identify the internal strengths and weaknesses of a business and the opportunities and threats that exist outside the business.

Strategic Planning

The process of defining a company's direction and making decisions on allocating its resources to pursue this strategy.

Internal Strengths

Unique capabilities within an organization that provide it with a competitive advantage in its industry.

Good Management

The practice of effectively and efficiently leading and organizing resources, including people, to achieve the goals of an organization.