Question

What are the other ways of calculating openness to trade other than using the trade flows of a country?

Answer 1

there are various ways to know the openness to trade other than using the trade flows of a country. the countrys trade policy reveals a lot about its openness. by trade policy we mean the tariffs quotas licenses and other trade barriers that hinders the trade. if these barriers are low then the country is more open to trade and vice versa. one more way to see if the country is open or not is the trade pacts or agreements signed by the country with the rest of the world. when a country starts to open its boundries it starts to make good relationship with other countries and signs different trade agreements with nations with respect to trade. one more ways to know the openness is the trade boundries of the country. as we know there are various boundries of trade like custom union, common market, free trade area, preferential trade area, economic union etc. if one knows in whicn category a country falls its easy to know the openness of trade in that country then.