Question

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.

Answer 1

40%

Step-by-step 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%