Suppose Turkey has exports of 2 billion Turkish Lira, while its imports are 2 billion Turkish Lira. Calculate Turkey's "Index of Openness" (Trade-to-GDP ratio) assuming Turkey has 10 billion Turkish Lira of output, or GDP.

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Susie

23 April, 08:52

Suppose Turkey has exports of 2 billion Turkish Lira, while its imports are 2 billion Turkish Lira. Calculate Turkey's "Index of Openness" (Trade-to-GDP ratio) assuming Turkey has 10 billion Turkish Lira of output, or GDP.

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Rhett Maynard · Answer 1

40%

Explanation:

The index of openness measures how much a country is exposed to international trade. It is calculated by this formula:

Index of Openness = (Exports (X) + Imports (M)) / GDP

Index of Openness = (2 billion+2 billion) / 10 billion

Index of Openness = 0,4*100=40%