What Is the Value of the Intra-Industry Trade Index for an Industry

question 14

Multiple Choice

What is the value of the intra-industry trade index for an industry in which exports are $200 million and imports are $20 million?

• A) 2.00
• B) (200 + 20)/20 = 11.00
• C) 20/[1/2 · (200 + 20)] = 0.18
• D) (200 - 20)/200 = 0.90

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Definitions:

Colorado Rockies

A major mountain range in the western United States extending from the northernmost part of New Mexico to British Columbia in Canada.

Materials Standards

Benchmarks or specifications set for the quality, quantity, and cost of materials used in production to achieve performance and efficiency goals.

Direct Materials Purchases Variance

This term refers to the difference between the actual cost of materials purchased and the expected (standard) cost of materials needed to manufacture the products during a specific period.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost.