As per the Gravity Model of world trade, which of the following components of the two countries determine the volume of trade between them? (A) Gross Domestic Product (B) Distance (C) Foreign exchange rate (D) Foreign trade intensity (E) Foreign investment Choose the correct answer from the options given below:
Tap an option to check your answer.
Checking your account…
Theories of international trade has come up 151 times in 6 exams since 2006.
This question is on Empirical trade patterns: the Leontief paradox and gravity, part of Theories of international trade in International Economics.
What the data say about trade and where the simple models fall short.
TestStop has 3 past-paper questions on this subtopic.
Question from the UGC-NET 2024 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.