Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2025 – Your All-in-One Resource to Complete Exam Success!

The primary factor that significantly influences a country's logistics as a percentage of GDP compared to other countries is infrastructure quality. A robust infrastructure, including transportation networks such as roads, railways, ports, and airports, plays a crucial role in determining how efficiently goods move within and across national borders.

When a country has high-quality infrastructure, it facilitates faster and more reliable transportation, reduces costs associated with delays and damages, and enhances connectivity for businesses. This efficiency translates into lower logistics costs as a percentage of GDP, making it more competitive on a global scale. In contrast, poor infrastructure can lead to increased transportation times and costs, inflation in logistics expenses, and inefficiencies that raise the overall logistics burden relative to GDP.

While trade agreements, aggregate inventory levels, and labor costs can influence logistics performance and costs, they are often secondary to the foundational role that infrastructure quality plays in enabling smooth logistics operations. Good infrastructure is essential for implementing trade agreements successfully, managing inventory levels effectively, and optimizing labor costs in the logistics sector.