Question: Please help me with the below question. Question 2 (15 percent): What are the main assumptions and predictions of the gravity model? For the country
Please help me with the below question.
Question 2 (15 percent): What are the main assumptions and predictions of the gravity model? For the country selected, discuss how well the gravity model explains the country's pattern of trade (i.e., in terms of volume and major trading partners). (Word limit: 300)
Question 3 (15 percent): How do patterns of trade based on comparative advantage differ from those based on internal or external economies of scale? For the country selected, discuss the relative importance of comparative advantage, and internal and external economies of scale in explaining the country's pattern of trade (i.e., major exports and/or imports). Be sure to explain each concept for full credit. (Word limit: 300)
sources:
- https://oec.world/en
- https://www.wto.org/english/res_e/statis_e/statis_e.htm
- https://data.worldbank.org/
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