1. A popular measure of a country’s “openness” to international trade is an index computed as the sum of the country’s exports and imports divided by its GDP.

Calculate and graph the openness index for India and China using annual data since 1950.

What has been the postwar trend? Can you think of any factors that might help explain this trend?

(Hint: You have to look at the trend and the changes.)

What usually happens to the openness index in recessions?