Which of the following is the formula for the intra-industry trade (IIT) share in a product's total trade? Multiple Choice 1-IX-MI 1-[IX+MI/(X-M)] 1-(X+M) 1-[IX-MI /(X+M)]

2. (a) What does the index of intra-industry trade measure and does it tell us anything about the total amount of trade? (b) There are two ways of measuring the degree of intra-industry trade within an industry: min (imports, exports) Index of intraindustry trade = 1 2 (imports + exports) -(lexpe (lexports - imports| exports + imports Grubel Lloyd index = 1 - Using the first formula, calculate the index of intra-industry trade for the U.S in 2014 for the products on Table 1. Using your answer in (b) above, what does the index of intra- industry trade of men's shorts, large passenger aircraft, telephones and golf carts tell us? (d) What are the two necessary conditions to obtain a high index of intra-industry trade?

(Q#1) A family finds itself experiencing a rash of unexpected medical problems that prove costly and require immediate treatment. Moreover, they are very concerned that more medical emergency situations could arise in the future: (a) the quantity of money balances needed and demanded will increase (b) the quantity of money balances needed and demanded will decrease (Q#2) During the current holiday shopping season, many stores are having unexpected reduced price sales and then clearance sales of quality items: (a) the quantity of money balances needed and demanded will increase (b) the quantity of money balances needed and demanded will decrease

Classify the following transactions as domestic investment, foreign portfolio investment or FDI. (c) An Australian firm starts a joint venture with a Chinese company in Shanghai. Both firms have equal ownership in the new joint venture. (d) The Australian company "Dumpling Queen" buys 25% of a new eatery in Adelaide.