Final answer:
A nation's trade share relative to its GDP is influenced by its openness to international trade, economic size and diversification, and geographical location.
Step-by-step explanation:
The question is asking for the three key factors that can affect a nation's volume of trade relative to its Gross Domestic Product (GDP). The three main factors that could determine whether a nation has a higher or lower share of trade relative to its GDP are:
- Openness to international trade: Countries that have fewer barriers to trade, such as tariffs and quotas, are generally more integrated into the global market, which can increase their trade share in GDP.
- Economic size and diversification: Larger economies with a diverse range of industries may engage in more trade. A diversified economy can produce a variety of goods and services for export and can also require a diverse set of imports.
- Geographical location: Proximity to trading partners and accessibility can significantly influence the level of trade a nation engages in. Countries that are located near major trade routes or that have well-developed transportation infrastructure may see a higher share of trade in their GDP.