Economics Trade Questions. See attached file for full problem description.
1. The intraindustry trade share is the total amount a country exports and imports of the same good. It can be calculated by dividing the quantities imported and exported by the total amount imported and exported by both Japan and the US. For example, for pharmaceuticals, you would calculate the total imported and exported as 23.98+ 3.2 + 35.37+ 6.2 =68.75. For the US, the intraindustry trade share would then be 59.35/68.75 =86%. Japan would then have the other 14%. You should get these figures for the other six industries for the US:
Iron and steel:63%
The higher this percentage, the more intra-industry trade the nation engages in.
2. A monopoly maximizes profit by choosing an ...