Suppose that a country has a low ratio of trade to GDP.Which of the
Following may be a possible explanation for this?
I.The country has high import tariffs on imports.
II.The country is geographically distant from the rest of the world.
III.The country is small.

Question

Quizplus · Accepted Answer

High import tariffs on imports can discourage international trade, while small countries often have limited resources to engage in trade. Additionally, being geographically distant can increase transportation costs and make trade less economically feasible. Therefore, all three factors could contribute to a low ratio of trade to GDP.

Suppose That a Country Has a Low Ratio of Trade