INDIA’S FOREIGN TRADE WITH U.S.A. & CHINA: A STUDY BASED ON TRADE INTENSITY APPROACH

 

Trade is crucial to promoting the economic growth of the country. With the development of national infrastructure and communications every year, it becomes more and more important to go beyond the ground. As a reason, policymakers must be able to measure a country's trade intensity in order to determine market potential. A simple ratio of trade activities exports to imports reveals imbalanced traits, which lead to scaling, proportionality, and symmetry problems with current Trade Intensity (TI) metrics. As a result, due to biased and skewed characteristics, the analysis could be incorrect. Additionally, existing TI metrics are focused on two-sided trade actions amongst nations and do not clearly report the countries marketplace potential component for changing export openings. Thus, we introduce the "TI Index," an advanced and innovative measure of trade intensity that focuses on correctness trading among nations import and export items. The similarity is very consistent and corresponds to the average change of all products in all global markets. The focus of this article is to design and build a new TI infrastructure to measure the potential of the internal market. New Trade Intensity (T’I) indexes provide ratings that make it easy to measure, compare, and understand changes in global products/countries/regions.

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Keywords: Trade Intensity Index, Export, Import, World, China, USA, India.


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