The Following Table Presents Data on Imports and Exports as a Percentage

question 10

Essay

The following table presents data on imports and exports as a percentage of gross domestic product (GDP) for select countries in 2015, based on data from the World Bank.
$$\begin{array} { l l l } \hline \text { Country } & \begin{array} { l } \text { Exports as a } \\\text { Percentage of GDP }\end{array} & \begin{array} { l } \text { Imports as a } \\\text { Percentage of GDP }\end{array} \\\hline \text { Australia } & 19.8 & 21.2 \\\text { Belgium } & 84.4 & 82.7 \\\text { Chile } & 30.1 & 30.3 \\\text { China } & 22.4 & 18.8 \\\text { South Korea } & 45.9 & 38.9 \\\text { United States } & 12.6 & 15.5 \\\hline\end{array}$$

Why might some of these countries tend to have much larger values for imports and exports as a percentage of GDP in comparison to other countries?

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Definitions:

Market Price

The market's ongoing price for an asset or service available for sale or purchase.

Firm's Bonds

Long-term debt securities issued by a corporation to finance its projects and operations, typically offering regular interest payments to the holder.

Depreciation Tax Deduction

A tax deduction allowing businesses to write off the loss of value of tangible assets over their useful lives, reducing taxable income.

Interest Tax Shield

The savings in taxes achieved by deducting interest payments on debt from taxable income.