Suppose that industry X and industry Y have intra-industry trade indexes equal to 0.80 and 0.20, respectively. Which of the following is then correct?
a. There is a greater share of intra-industry trade in industry X than in industry Y.
b. There is a greater share of intra-industry trade in industry Y than in industry X.
c. Industry X and industry Y have equal shares of intra-industry trade.
d. There is no intra-industry trade in either industry X or industry Y.
Ans: a. There is a greater share of intra-industry trade in industry X than in industry Y.
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