Question

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 B is equal to the value of $2billion.​

Answer 1

Answer:

The Grubel–Lloyd index measures intra-industry trade of a particular product. It was introduced by Herb Grubel and Peter Lloyd in 1971. where Xi denotes the export, Mi the import of good i. If GLi = 1, there is a good level of intra-industry trade.