(Table: Distances and GDP) According to the Gravity Equation, Which

question 72

Multiple Choice

(Table: Distances and GDP) According to the gravity equation, which country should be the United States' smallest trade partner?

• A) Germany
• B) Norway
• C) France
• D) Sweden

---

Definitions:

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.

Acquisition Differential

The gap between the acquisition cost of a company and the fair value of its clearly identifiable net assets.

Impairment

A decrease in the recoverable value of an asset below its carrying amount, leading to an adjustment in the value recorded on financial statements.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net tangible assets.