The two neighbors of the United States do a lot more trade with the United States than European economies of equal size.

Question

Quizplus · Accepted Answer

Gravity models predict that countries with closer proximity and larger economies will engage in more trade with each other. The fact that the US does more trade with its two neighbors than with European economies of equal size is consistent with this prediction, as Canada and Mexico are geographically closer and have larger economies than many European countries.

The Two Neighbors of the United States Do a Lot