Measuring the openness of an economy The following table contains information on two hypothetical nations, Steelvania and Brownitopia, that exist as part of a larger hypothetical international economy. Use the information provided to compute the openness measure for each country. Exports Imports GDP Openness Measure Country (Billions of dollars) (Billions of dollars) (Billions of dollars) Brownitopia 24 21 125 ________ Steelvania 106 97 145 ___

Measuring the openness of an economy The following table contains information on two hypothetical nations, Steelvania and Brownitopia, that exist as part of a larger hypothetical international economy. Use the information provided to compute the openness measure for each country. Exports Imports GDP Openness Measure Country (Billions of dollars) (Billions of dollars) (Billions of dollars) Brownitopia 24 21 125 ______ Steelvania 106 97 145 _

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 3SCQ: State whether each of the following events Involves a financial flow to the Mexican economy or a...

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Measuring the openness of an economy

The following table contains information on two hypothetical nations, Steelvania and Brownitopia, that exist as part of a larger hypothetical international economy.

Use the information provided to compute the openness measure for each country.

	Exports	Imports	GDP	Openness Measure
Country	(Billions of dollars)	(Billions of dollars)	(Billions of dollars)
Brownitopia	24	21	125	________
Steelvania	106	97	145	_________

Based on your calculations, you can conclude that Steelvania is relatively _____ (less or more) open than Brownitopia.

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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