Chapter 2 (Who trades with whom?)
0.0(0)
Studied by 49 people
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt PlayCard Sorting
1/3
Earn XP
Description and Tags
Last updated 1:51 PM on 10/18/22
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
3 Terms
1
New cards
Gravity Model of Trade
Bilateral trade is a function of distance, population and the size of two countries' economies.
- Simply richer, more populous countries buy more and transaction costs are a function of distance.
- Only predicts total flows, not what is traded
- Simply richer, more populous countries buy more and transaction costs are a function of distance.
- Only predicts total flows, not what is traded
2
New cards
Gravity Model of Trade - equation
3
New cards
What are impediments to trade?
Distance, trade barriers, and borders