Q.

In its most basic form, the gravity model says that the most important factors that describe the amount of trade between countries are

A. the cultural affinity between the countries and the existence or lack of a common language.
B. the tariff barriers between the countries and the costs of transportation.
C. differences in wages and technology between countries.
D. the amount that the countries produce and the distance between them.
Answer» D. the amount that the countries produce and the distance between them.
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