Question

What does the trade-to-GDP ratio measure? Does a low value indicate that a country is closed...

What does the trade-to-GDP ratio measure?

Does a low value indicate that a country is closed to trade with the outside world?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Trade-to-GDP ratio refers to the ratio of the value of total trade (import and export) and total GDP of an economy in a given year. So, trade-to-GDP ratio = value of total trade/value of total GDP.

Trade-to-GDP ratio indicates the relative importance of international trade in an economy. Higher trade to GDP ratio indicates that the country is relatively open to the rest of the world as the total volume of trade of the economy is relatively high. On the other hand, a lower trade to GDP ratio indicates that the country is relatively close to the rest of the world as the total volume of trade of the economy is relatively less.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What does the trade-to-GDP ratio indicate about an economy? Why does a smaller country, such as...
What does the trade-to-GDP ratio indicate about an economy? Why does a smaller country, such as Luxembourg, generally have a larger trade-to-GDP ratio?
Some countries have low ratios of international trade (exports + imports) to GDP (such as the...
Some countries have low ratios of international trade (exports + imports) to GDP (such as the United States), while, in other countries, the ratio of international trade to GDP exceeds one. How is it possible for trade to exceed the value of GDP?
GDP is often used as a measure of well-being. Is it a reasonable measure of well-being?...
GDP is often used as a measure of well-being. Is it a reasonable measure of well-being? If so, why does Norway with its high standard of living have a relatively low GDP? Why do India and China, with their relatively low standards of living have some of the highest GDP in the world? must be at least 250 word count
What is the difference between income and wealth of a country? Is GDP a measure of...
What is the difference between income and wealth of a country? Is GDP a measure of income or wealth or both or neither?    Do you think we should care about measuring the wealth of a country? Why or why not?
Australia For the country you are researching, how important is trade (trade as a share of...
Australia For the country you are researching, how important is trade (trade as a share of GDP)? What products and services does it export and import? Is there a concerted effort to promote exports to stimulate the economy? With whom does the nation trade? Is it dependent on any particular nation for trade, or does another nation depends on it? Is outsourcing affecting its trade patterns? Does the nation trade only with high-income countries or with low- and middle-income countries...
Indicate for each ratio given below, if its value should be low or high. a. Debt...
Indicate for each ratio given below, if its value should be low or high. a. Debt ratio _______________ b. Current ratio ______________ c. Debt-payments ratio _______________ d. Savings ratio ______________
GDP and WELL-BEING The following questions pertain to the U.S.' GDP. 1. What does GDP measure?...
GDP and WELL-BEING The following questions pertain to the U.S.' GDP. 1. What does GDP measure? 2. How well does GDP measure the well-being of a society? 3. Assume you were assigned the responsibly for establishing a new metric to modify GDP so that it encompass production and the well-being of a society. Discuss the additions you would make to GDP and why.
Explain why we can measure the GDP or output of a country by adding up either...
Explain why we can measure the GDP or output of a country by adding up either the market value of production in that country or by adding up the income earned by people in that country.
Gross domestic product (GDP) is a measure of the market value of final goods and services...
Gross domestic product (GDP) is a measure of the market value of final goods and services produced within the borders of a country during a specific time period, usually a year. What is the GDP deflator? How does the GDP deflator relate to real GDP? Review GDP and nominal versus real. Real adjusts for inflation, so how do we arrive at the real GDP number from nominal GDP? Review the GDP deflator formula, where GDP deflator = (Nominal GDP/Real GDP)...
Suppose that when trade with the rest of the world begins, country A begins to import...
Suppose that when trade with the rest of the world begins, country A begins to import textilesa low-skill, labor-intensive good. a) What is likely to be the effect of trade on wages of different types of workers in country A? Explain why in detail? (2 points) b) Which group of citizens in country A would you expect to support free trade and why? Why would oppose free trade and why? (2 points)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT