International Trade - Italy import

1. Please explain why Italy is very active in trade in vaccines, blood, antisera, etc. use this theory, This is product differentiation theory

EXPORT (ITALY)- PACKAGED MEDICAMENTS ~ Packaged Packaged Medicaments Medicaments HS4 ID 3004 HS4 ID 3004 Exports Value $25.3B Imports Value $16.98 Percentage 4.86% Percentage 3.53% IIT INDEX = 0.801 = 80.1% In 2019, Italy has an IIT index of 0.801. Based on the IIT, this shows that Italy is a| very active nation in trade when it comes to packaged medicaments as they export larger value of packaged medicaments and also imports large value of it as well. The factor that lies behind how the IIT of Italy is high for packaged medicaments is the theory of product differentiation. Since Italy is known as a pharmaceutical hub and are able to produce large amounts of high-quality packaged medicaments, they are able to export large amounts of this products at higher prices due to its quality, in return they will than import the same products at a lower price. What differentiates the product exported from Italy than other nations are its quality, since the packaged medicaments industry in Italy are guided with a very strict quality control measures to make sure it is of the best quality.~BLOOD, ANTISERA, VACCINES, TOXINS AND CULTURE Blood, antisera, Blood, antisera, vaccines, toxins vaccines, toxins and cultures and cultures HS4 ID 3002 HS4 ID 3002 Imports Value 58.66B Exports Value $7.95B Percentage 1.81% Percentage 1.53% IIT INDEX = 0.957 = 95.7%BROADCASTING EQUIPMENT Broadcasting Broadcasting Equipment Equipment HS4 ID 8525 HS4 ID 8525 Imports Value $8.03B Exports Value $1.65B Percentage 1.67% Percentage 1.24% IIT INDEX = 0.341 = 34.1%GOLD Gold Gold HS4 ID 7108 HS4 ID 7108 Imports Value $5.21B Exports Value 53.98B Percentage 1.09% Percentage 0.77% IIT INDEX = 0.866 = 86.6%