Larger Countries Will Trade More with One Another; This Is

question 131

Multiple Choice

Larger countries will trade more with one another; this is
Empirically supported by:

• A)the intra­industry trade.
• B)the increasing returns to scale.
• C)the gravity equation.
• D)the comparative advantage.

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Definitions:

Contractual Obligation

A duty or commitment that is legally enforceable due to a contract agreement.

Hedging

A financial strategy used to reduce or manage risk associated with price movements of assets by taking an opposite position in a related security.

Hedging Relationship

A risk management strategy where two or more financial instruments are used together to offset potential losses in investments.

Hedged Item

A recognized asset or liability, unrecognized firm commitment, or highly probable forecast transaction in a hedging relationship.