The differences in the ratios of exports to GDP across countries are believed to be caused primarily by:
A) geography and size.
B) fiscal policy.
C) monetary policy.
D) trade barriers.
E) the inflation differential between countries.

Question

Quizplus · Accepted Answer

Geography and size play a significant role in determining a country's exports to GDP ratio. For instance, countries with access to ports and other vital transportation infrastructure are more likely to have a higher ratio of exports to GDP. Additionally, larger countries may have access to more natural resources and larger markets, which could enhance their capacity to export goods and services.

The Differences in the Ratios of Exports to GDP Across