:In this question, you will be asked to further explore intra-industry trade.We have generally calculated an index of intra-industry trade by looking at a commodity and aggregate exports and imports.In this question, we will examine the aggregate index of intra-industry trade.

a)Consider two products: rice and paintings.Which do you expect to have a higher index of intra-industry trade?Why?Remember here is the formula: (in the picture)

b)Now, let's get some data.Go to the U.S. TradeStats Express website:https://tse.export.gov (which will direct you to http://tse.export.gov/tse/tsehome.aspx)

(i)Click on "National Trade Data" and then "Global Patterns of U.S. Merchandise Trade."

a.Under the "Product/flow" section, click export (you will later be asked to click import).

b.Under the "Product/Item" section, click "change." You want to find rice (HS 1006).

c.After clicking "change," check "HS."

d.Click "Product Search," type 1006, click "Update."

e.Under "Table Display" choose annual data 2014 to 2019.

f.Hit "Go."Data on rice exports from 2014 to 2019 will appear for the world and all countries we export to.

g.Download the data: click "Download Center," click Data (in CSV format).This will download the data.

(ii)Repeat (i) except get imports for rice (HS 1006).

(iii)Repeat (i) except get exports for paintings (HS 9701).

(iv)Repeat (i) except get imports for paintings (HS 9701).

(v)It will be useful to put the results from (i) - (iv) in a single spreadsheet.Email me this spreadsheet when you submit your answers.The name of the spreadsheet should be ", Final.xlsx.

c)Calculate the index for intra-industry trade for rice and for paintings for the World for all years.

Create "nice-looking" table that shows the index for intra-industry trade for rice in 2014 and 2019, and the index for paintings in 2014 and 2019.

(i)Is the index relatively stable over time or does it fluctuate wildly?If stable, why? If fluctuates, why?

a)We now want to calculate the index for rice for a few specific countries.Construct the index of intra-industry trade rice for Thailand, India, Australia, and Turkey.Discuss your answer.(Be careful since the order of countries for imports and exports are different.)Are the numbers surprising (why)?Do the numbers for individual countries different from the numbers for the world as a whole?Why?Are they what you expected (why)?How would explain why some of the numbers appear to fluctuate so much?Is this a concern for drawing conclusions?

b)We next want to calculate the index for paintings for a few countries.Construct the index of intra-industry trade for paintings for France, Italy, Thailand, and India.Are the numbers surprising (why)?Are they what you expect (why)?

Question 3: In this question, you will be asked to further explore intra-industry trade. We have generally calculated an index of intra-industry trade by looking at a commodity and aggregate exports and imports. In this question, we will examine the aggregate index of intra-industry trade. a) Consider two products: rice and paintings. Which do you expect to have a higher index of intra-industry trade? Why? Remember here is the formula: Minimum (imports, exports) Index = 100 * Average(imports, exports) b) Now, let's get some data. Go to the U.S. TradeStats Express website: https://tse.export.gov (which will direct you to http://tse.export.gov/tse/tsehome.aspx) (i) Click on "National Trade Data" and then "Global Patterns of U.S. Merchandise Trade.' a. Under the "Product/flow" section, click export (you will later be asked to click import). b. Under the "Product/Item" section, click "change." You want to find rice (HS 1006). C. After clicking "change," check "HS." d. Click "Product Search," type 1006, click "Update." Under "Table Display" choose annual data 2014 to 2019. f. Hit "Go." Data on rice exports from 2014 to 2019 will appear for the world and all countries we export to. g. Download the data: click "Download Center," click Data (in CSV format). This will download the data. Repeat (i) except get imports for rice (HS 1006) ( ili) Repeat (i) except get exports for paintings (HS 9701). (iv) Repeat (i) except get imports for paintings (HS 9701). ( V ) It will be useful to put the results from (0) - (iv) in a single spreadsheet. Email me this spreadsheet when you submit your answers. The name of the spreadsheet should be ", Final.xIsx. c) Calculate the index for intra-industry trade for rice and for paintings for the World for all years. Create a "nice-looking" table that shows the index for intra-industry trade for rice in 2014 and 2019, and the index for paintings in 2014 and 2019.1(ii) Is the index relatively stable over time or does it fluctuate wildly? If stable, why? If fluctuates, why? d) We now want to calculate the index for rice for a few specific countries. Construct the index of intra-industry trade rice for Thailand, India, Australia, and Turkey. Discuss your answer. (Be careful since the order of countries for imports and exports are different.) Are the numbers surprising (why)? Do the numbers for individual countries different from the numbers for the world as a whole? Why? Are they what you expected (why)? How would explain why some of the numbers appear to fluctuate so much? Is this a concern for drawing conclusions? e) We next want to calculate the index for paintings for a few countries. Construct the index of intra-industry trade for paintings for France, Italy, Thailand, and India. Are the numbers surprising (why)? Are they what you expect (why)