Other things equal, the gravity equation predicts that the United
States will have more trade with __________ than with
_________.
A)Bangladesh; Japan
B)Russia; Japan
C)Canada; Bangladesh
D)Russia; Bangladesh

Question

Quizplus · Accepted Answer

The gravity equation in international trade suggests that trade between two countries is positively related to their economic size (GDP) and negatively related to the distance between them. Canada is geographically closer to the United States and has a larger economy compared to Bangladesh, leading to more trade.

Other Things Equal, the Gravity Equation Predicts That the United