Trade Concentration Ratio
A measure of the degree of diversification of the international trade of a country. If the country trades with only a few other countries (North Korea) its trade concentration ration is high. If it trades with many countries (Germany), the trade concentration ratio is low.
Technically, trade concentration is measured with the Herfindahl index: the sum of the squares of the trade shares with each individual trading partner.
Technically, trade concentration is measured with the Herfindahl index: the sum of the squares of the trade shares with each individual trading partner.