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What is the primary factor that determines the pattern of international trade according to the Gravity model?
  • a)
    Economic sizes of nations
  • b)
    Tariff rates
  • c)
    Cultural factors
  • d)
    Currency exchange rates
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the primary factor that determines the pattern of internationa...
The Gravity model of trade proposes that the primary factors influencing the pattern of international trade are the economic sizes of nations and the distance between them. It suggests that larger economies tend to trade more with each other.
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