Podcast
Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App
Questions and Answers
What concept explains the influence of an economy's size on trade?
What concept explains the influence of an economy's size on trade?
- $E = mc^2$
- $F = ma$
- Gravity model (correct)
- Comparative advantage theory
What factor reduces trade according to Chapter 2?
What factor reduces trade according to Chapter 2?
- Distance and borders (correct)
- $E = mc^2$
- $y = mx + b$
- $F = ma$
Flashcards
Gravity Model of Trade
Gravity Model of Trade
A model in international economics which predicts trade flows based on the size and distance between economies. Larger economies trade more; greater distances reduce trade.
Factors Reducing Trade
Factors Reducing Trade
Distance, borders, and other frictions (like tariffs or cultural differences) reduce the volume of trade between countries.
