How can the general openness of a country to trade be assessed?

The general openness of a country to trade can be effectively assessed by analyzing the sum of exports and imports as a share of GDP. This metric provides a comprehensive view of how integrated an economy is within the global marketplace. When exports and imports constitute a significant portion of a country's GDP, it indicates a high level of trade activity—suggesting that the country is actively engaging with international markets. This integration can foster economic growth, diversify the economy, and encourage competition.

In contrast, simply comparing the number of imports to exports may not provide a full picture of trade openness, as it does not account for the size of the economy. Evaluating trade agreements can give insights into the legal framework and facilitation of trade but does not directly measure the actual trade volume relative to economic size. Foreign exchange rates may influence trade but are more indicative of currency stability than of a country's overall trade openness. Thus, focusing on the sum of exports and imports relative to GDP offers a clearer and more quantifiable assessment of a country's openness to trade.