International Econ - Chapter 2 - World Trade Overview

cmarquardt94's version from 2016-09-26 05:12


Question Answer
The gravity model does what?gravity model relates the trade between any two countries to the sizes of their economies
Using the gravity model also reveals the strong effects of....?distance and international borders - even friendly border like beteen US and Canda - in discouraging trade
Why is international trade at record levels relative to the size of the world economy?because of the falling costs of transportation and communication
Has trade grown in a straight line?NO, the world was highly integrated in 1914, but trade was GREATLY reduced by economic depression, protectionism, and war, took decades to recover
What type of goods dominate modern trade today?Manufactured goods
What used to be much more important than they are now?primary products
Trade in [what] has become increasingly important?trade in SERVICES!
How have developing countries changed?developing countries have shifted from being mainly exporters of primary products TO being mainly exporters of manufactured goods