Final answer:
The share of U.S. exports in the country's GDP rose from 3.6% in 1960 to 12.4% in 2007, reflecting an increase in the importance of trade. Exports account for approximately 14% of the U.S. GDP. Understanding the trade balance is also critical in assessing the broader economic interactions of a country.
Step-by-step explanation:
The United States has experienced a significant increase in the role of international trade over the decades. In 1960, exports only accounted for 3.6% of the real Gross Domestic Product (GDP), but by 2007, they grew to represent 12.4% of the real GDP. This growth signifies the increasing importance of trade to the U.S. economy.
When considering the global context, according to The World Bank, exports as a percentage of GDP offer a window into how much a country's production participates in international markets. For a country like the United States, exports represent about 14% of the U.S. GDP, which provides an understanding of the importance of exports in the national economy. In contrast, other countries such as Germany might see much higher percentages, indicative of different economic structures and reliance on foreign markets.
The trade balance, which is the difference between exports and imports, also plays a crucial role. When examining the U.S. trade balance, one should take into account not only the trade deficit or surplus but also the international flows of funds for investments, constituting the broader current account balance.