Question: Question 1 ( 7 marks) The Gravity Model The gravity model of international trade is able to predict trade flows between two countries based on

Question 1

( 7 marks)

The Gravity Model

The gravity model of international trade is able to predict trade flows between two countries based on two principal factors.

Describe the gravity model specify the variables, use an example of Canada and the USA, or Mexico and the USA both situations where the gravity model has been found to be accurate. ( Minimum word 250 for Answer )

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