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; Canada

Question

Quizplus · Accepted Answer

According to the gravity equation, trade between two countries will be higher if they have a closer geographic proximity and a larger economic size. Canada is geographically closer to the US and has a larger economic size compared to Bangladesh, which is farther away and has a smaller economic size. Therefore, the US is predicted to have more trade with Canada than with Bangladesh. The option with Russia is also possible, but Japan has a larger economic size compared to Bangladesh and a closer geographic proximity compared to Russia.

Other Things Equal, the Gravity Equation Predicts That the United