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Market concentration ratio | Germany | Imports and Exports | ALL COMMODITIES | 2022

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Reporter	TOTAL. ALL COMMODITIES
	Exports	Imports
	Market concentration ratio	Market concentration ratio
	2022	2022
Germany	0.15	0.15

Market (geographic) diversification of trade by commodity shows how wide the list of trading partners (importers or exporters) of the country is. Market diversification depends on the number of trading partners and the share of each of them in the total trade flow. The main indicator in this dataset is the market concentration index. It is calculated using the Herfindahl-Hirschman index and ranges from 0 to 1. The lower the market concentration index, the more diversified is the market for sales (for exports) or purchases (for imports) of a particular product, and vice versa. An index value close to 1 indicates a high concentration of the commodity market for exports and a high dependence on individual suppliers for imports. The dataset also contains accompanying indicators illustrating the diversification of foreign trade.