Which of the following is (are) factors affecting the constant in
Gravity equation estimates?
I.tariffs and quotas
II.customs' issues and finance and currency issues
III.administrative barriers to trade
A)I
B)II
C)III
D)I, II, and III

Question

Quizplus · Accepted Answer

All three factors, tariffs and quotas, customs' issues and finance and currency issues, and administrative barriers to trade, can affect the constant in Gravity equation estimates. Tariffs and quotas can affect the cost of trade and make it costlier for countries to trade. Customs' issues and finance and currency issues can also have an impact on the cost of trade and the ease of doing business. Administrative barriers to trade such as regulations, certifications, and standards can also affect trade costs and make it difficult for countries to trade with each other.

Which of the Following Is (Are) Factors Affecting the Constant