Final answer:
A nation's geographic location, economic structure, and trade policies are the three key factors that determine its level of trade relative to GDP, affecting its reliance strategy in international trade.
Step-by-step explanation:
The question 'What three factors will determine whether a nation has a higher or lower share of trade relative to its GDP?' relates to a nation's reliance strategy in the context of international trade. Three main factors are likely to influence this:
- Geographic Location: The accessibility of a nation to sea routes and its proximity to trading partners can significantly impact its trade volume.
- Economic Structure: The composition of a nation's economy, such as its balance between services and manufacturing, can dictate its reliance on import and export activities.
- Trade Policies: Tariff levels, trade agreements, and regulatory frameworks set by the government will either facilitate or hinder international trade.
By considering these factors, a nation can strategize to optimize its trade practices in alignment with its economic goals and capabilities, adapting to global tendencies and maintaining flexibility in times of uncertainty.