One way to measure the importance of trade to a nation is to examine ________.

Question

Quizplus · Accepted Answer

The volume of a nation's trade relative to its total output, also known as the trade-to-GDP ratio, is a common measure of how important trade is to an economy. Higher ratios indicate a greater reliance on trade and suggest that trade policies and fluctuations in international trade could have a significant impact on the economy. Choice A is not relevant to measuring the importance of trade, while choice B is only one factor among many that could provide a nation with an advantage in international trade. Choice C is related to the concept of trade, but does not directly measure its importance to a nation.

One Way to Measure the Importance of Trade to a Nation