Question 1

The exports and imports of country Z in year 1 are listed below. These are the only goods traded by country Z.

Good	Value of Exports	Value of Imports
A	$100.00	$120.00
B	$300.00	$80.00
C	$400.00	$300.00
TOTAL	$800.00	$500.00

a) Calculate country Z's individual goods Grubel-Lloyd index of intra-industry trade for year 1.

b) Calculate country Z's Overall Grubel-Lloyd index of intra-industry trade for in year 1.

c) Comment on Country Z's Overall Grubel-Lloyd index.

Question 2

Assume that the nominal tariff rates on Fiji's ten critical imports and the total import value for each good are listed in the table below:

Goods	Nominal Tariff Rate	Total Import Value($M)
Fuel	10%	$600.00
Meat	5%	$300.00
Car	Free	$500.00
Television	30%	$400.00
Milk	2%	$200.00
Tin Fish	2.5%	$100.00
Mobile Phones	15%	$400.00
Laptop	8%	$400.00
Fridge	40%	$200.00
Sewing Machine	4%	$100.00

(a) Calculate the unweighted-average nominal tariff rate for Fiji. (4 marks) (b) Calculate the weighted-average nominal tariff rate for Fiji.