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What is the Grubel Lloyd index, the index that is used to measure the level of intra industry trade? Country A exports $6billion of perfumes, and the imports of perfumes in Country Bis equal to the value of $2billion.a) 0.75b) 0.10c) 0.5d) 0.66 |
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Answer» The Grubel–LLOYD index measures intra-industry trade of a PARTICULAR product. It was introduced by Herb Grubel and Peter Lloyd in 1971.{\displaystyle GL_{i}={\dfrac {(X_{i}+M_{i})-\left|X_{i}-M_{i}\right|}{X_{i}+M_{i}}}=1-{\dfrac {\left|X_{i}-M_{i}\right|}{X_{i}+M_{i}}}\qquad ;\ 0\leq GL_{i}\leq 1} {\displaystyle GL_{i}={\dfrac {(X_{i}+M_{i})-\left|X_{i}-M_{i}\right|}{X_{i}+M_{i}}}=1-{\dfrac {\left|X_{i}-M_{i}\right|}{X_{i}+M_{i}}}\qquad ;\ 0\leq GL_{i}\leq 1}where Xi denotes the EXPORT, Mi the import of good i.If GLi = 1, there is a good level of intra-industry trade. This means for example the Country in consideration Exports the same quantity of good i as MUCH as it Imports. Conversely, if GLi = 0, there is no intra-industry trade at all. This would mean that the Country in consideration only either Exports or only Imports good i.Explanation:Mark me as the brainliest.. |
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