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please explain using this theory and why are there more imports than exports? 1. EXPORT (ITALY)- PACKAGED MEDICAMENTS ~ Packaged Packaged Medicaments Medicaments HS4 ID
please explain using this theory and why are there more imports than exports?
1.
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.~IMPORT (ITALY)- CRUDE PETROLEUM Crude Petroleum Crude Petroleum HS4 ID 2709 HS4 ID 2709 Imports Value $36.5B Exports Value $49M Percentage 7.61% Percentage 0.29% IIT INDEX = 0.0026 = 0.26%PETROLEUM GAS Petroleum Gas Petroleum Gas HS4 ID 2711 HS4 ID 2711 Imports Value $15.98 Exports Value $256M Percentage 3.3% Percentage 1.51% IIT INDEX = 0.032 = 3.2%<Step by Step Solution
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