Final answer:
China is the world's largest exporter. Germany's economy is highly trade-oriented, exporting about 50% of its GDP, while the U.S. exports a smaller proportion at 14% due to its large domestic economy. Factors like a large domestic market or a high investment rate compared to savings can influence trade levels and imbalances.
Step-by-step explanation:
The largest exporter in the world, as of the most recent data, is China. This information highlights China's significant role in global trade, with its vast manufacturing base and extensive export of goods worldwide. When comparing the export activities of different countries, it's important to look at exports as a percentage of GDP to understand their impact on a country's economy.
Germany exports about 50% of its GDP, indicating a high level of trade in comparison to the size of its economy. In contrast, the United States exports 14% of its GDP, which suggests a smaller role of trade in proportion to its large domestic economy. Economies like Germany have a high propensity to trade, often resulting from a smaller domestic market or a specialization in certain goods that are in demand globally.
Regarding the factors that could lead to higher trade levels or imbalances: Living in an especially large country typically means that there's a vast domestic market to serve, which can reduce the reliance on international trade. This is exemplified by the United States. On the other hand, having a domestic investment rate much higher than the domestic savings rate can lead to a greater imbalance of trade, as this may necessitate bringing in capital from foreign markets, potentially causing a trade deficit.