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According to gravity model

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Reference no: EM133304565

Question 1.

According to a gravity model, the United States traded more heavily with Germany, the United Kingdom and France. Why?

a. These countries have the largest gross domestic product in Europe.

b. These countries have the closest distance from the United States.

c. These countries have a strong cultural affinity with the United States.

d. These countries have a trade agreement between them.

Question 2.

According to Ricardo, a country will have a comparative advantage in the product in which its

a. labour productivity is relatively high.

b. labour mobility is relatively low.

c. labour productivity is relatively low.

d. labor mobility is relatively high.

Reference no: EM133304565

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