Why Does the Gravity Model Work

question 17

Multiple Choice

Why does the gravity model work?

• A) Large economies became large because they were engaged in international trade.
• 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 tend to have large incomes and tend to spend more on imports.
• E) Large economies tend to avoid trading with small economies.

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