Question: a. Of two products, rice and paintings, which product do you expect to have a higher index of intra-industry trade? Why?
b. Access the U.S. TradeStats Express website at https://tse.export.gov/. Click on "National Trade Data" and then "Global Patterns of U.S. Merchandise Trade." Under the "Product" section, change the item to rice (HS 1006) and obtain the export and import values. Do the same for paintings (HS 9701); then calculate the intra-industry trade index for rice and paintings in 2012. Do your calculations confirm your expectation from part (a)? If your answers did not confirm your expectation, explain.