Multiple Choice
Why does the gravity model work?
A) Large economies tend to avoid trading with small economies.
B) Large economies have relatively large incomes,and hence spend more on government promotion of trade and investment.
C) Large economies have relatively larger areas,which raises the probability that a productive activity will take place within the borders of that country.
D) Large economies became large because they were engaged in international trade.
E) Large economies tend to have large incomes and tend to spend more on imports.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Which of the following does NOT explain
Q2: The two neighbors of the United States
Q3: Approximately what percent of all world production
Q4: In the early 20th century,the United Kingdom
Q6: Since the early 1970s,world's trade as a
Q7: According to the gravity model,a characteristic that
Q8: In the present,most of the exports from
Q9: In general,which of the following do NOT
Q10: The gravity model explains why<br>A)capital rich countries
Q11: In the current Post- Industrial economy,international trade