QUESTION 1. Consider two countries: South Korea and New Zealand and two goods: Lamb and Air Pumps. South Korea imports $210 million worth of lamb from New Zealand and exports $10 million worth of lamb...

QUESTION 1.
Consider two countries: South Korea and New Zealand and two goods: Lamb and Air Pumps. South Korea
imports $210 million worth of lamb from New Zealand and exports $10 million worth of lamb to New Zealand.
On the other hand, New Zealand imports $60 million worth of air pumps from South Korea and exports $20
million worth of air pumps to South Korea. What is the inter-industry trade measure between these two countries?
(a) 2/3.
(b) 1/5.
(c) 4/5.
(d) 1/3.

Explain why.