Economics · International Economics
The gravity model of international trade suggests that bilateral trade volume between two countries is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Inversely related to their economic sizes
- 2Directly related to their economic sizes and inversely related to the distance between them✓
- 3Determined solely by comparative advantage
- 4Independent of geographic factors
Correct answer
Directly related to their economic sizes and inversely related to the distance between them
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