Problem
1. Why does Linder's theory of trade in manufactured products predict that more trade will take place between similar countries? Trade in services is becoming increasingly important to the United States; would you predict that this US trade is more likely to be conducted with similar countries or with dissimilar countries?
2. Explain what the index of intra-industry trade shows, and suggest why the values of this index for Japan and Germany are so different.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.