6. Suppose that the following information represents thecomplete trade data for each country.
| Exports ($) | Imports ($) |
Country A Good X Good Y Good Z | 8,000 12,000 10,000 | 4,000 5,000 0 |
Country B Good R Good S Good T | 0 1,900 1,600 | 7,000 9,000 3,000 |
Country C Good M Good N Good O | 8,000 5,000 5,400 | 3,400 2,500 2,800 |
(a) Calculate the intra-industry trade index for each commoditycategory in each country.
(b) Calculate the intra-industry trade index for total trade ineach country.
(c) Use trade theory to explain the usefulness of these indicesin determining each country’s trade patterns.
Note: You may use either the Balassa index or the Grubel-Lloydindex for your calculations.
