Suppose That Imports and Exports in an Industry Are $100

question 44

Multiple Choice

Suppose that imports and exports in an industry are $100 million and $200 million, respectively. Will the index of intra-industry trade for this industry rise, fall, or remain unchanged if exports fall to $100 million?

• A) It will rise.
• B) It will fall.
• C) It will remain unchanged.
• D) There is not enough information to determine how the index will change.

---

Definitions:

Negligent Performance

The failure to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm or damage.

Actual Knowledge

Awareness of a fact or circumstance based on firsthand experience or explicit information; not based on hearsay.

Illegal Payment

A transaction involving money or value that is made in violation of the law or regulatory rules.

Audit

A systematic review and assessment of information or documents, often referring to financial accounts, to ensure accuracy and compliance with laws and regulations.