1. In recent years, there has been a remarkable growth of international trade in the global economy.

2. A country’s “Openers” to international trade is measured through the ratio of merchandise exports to the GDP. India’s Exports/GDP ratio increased from 3.8 per cent in 1970 to 7.8 per cent in 1991, whereas, that of China’s rose from 1.8 per cent of GDP to 9.5 per cent of GDP in the same period. On an average for the global economy as a whole this ratio increased from 10.1 per cent in 1970 to 15.4 per cent in 1991.

3. A country’s dependency trade is measured by the ratio of imports of GDP.

4. A country’s trade intensity is reflected by her net exports.

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5. Major determinants of a country’s international competitiveness are:

(i) Its state of basic factor endowments such as natural resources, geographical environment, human resource and capital formation.

(ii) Its state of advanced factor-supply such as infrastructure, technological development, labour skills, telecommunications, financial system, etc.

(iii) The country’s size and composition of the domestic market for the product relative to world market demand.

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(iv) Ownership management and operational strategy of the business firms in the country.

(v) Government’s policies and attitude and political stability.