Mexico and Brazil have very different trading patterns. While Mexico trades mainly with the United States, Brazil trades about equally with the United States and with the European Union. In addition, Mexico does much more trade relative to its GDP. Explain the differences using the gravity model.

Various international crises and issues periodically raise the price of oil imports, which can send ripple effects throughout the economy. While it might not be the producer that other countries are, the U.S. has vast supplies of oil. What is a likely reason it still imports oil despite the impact of these international influences on prices?   Group of answer choices   Importing oil allows the U.S. to focus on developing other industries.   The U.S.’s environmental standards are too high to produce oil domestically.   The opportunity costs of producing all oil products domestically must still be higher than importing.   The U.S. is trying to prop up its political partners by importing their oil.

In the picture below is the full question. The highlighted one is my guess which is wrong. Which of the following best describes Globalization? A)A shirt was made in Columbia but the cotton was grown in Mississippi and the fabric was made in Indonesia B)Trade and bartering  C)Trade policies and trade barriers to protect domestic production D)A shirt made in Columbia, a cell phone made in China, and Wine imported from Italy(this one is wrong)

Please note: for part i. of the question - the cost of copying is changing for the FOLLOWER COUNTRY (Country 2).

Apply the gravity model to India and China. Why has it taken so long for India and China to become serious trading partners? Think of 18th century trade patterns, importation of raw materials back to the UK from their colonies.  Apply the gravity model to the UK in the year 2021. What countries are most important to the UK’s trade relationships?

The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now an aggressive policy of increasing tariffs on foreign goods imported into the country results retaliatory actions from the other countries against the country’s products and services. This causes great loss of business in the country and results in significant portion of workers losing their jobs. Given this scenario, insert your answers below each of the following questions. What kind of economic gap will start to occur (inflationary or recessionary)?  Which of these graphs, Figure 1 or Figure 2, depicts this economic gap? Figure 1: Graph of the economy showing demand shifted to the right.   Figure 2: Graph of the economy showing demand shifted to the left.  What part of the Federal Reserve’s congressional mandate does this scenario trigger (price stability and maximum sustainable employment)?  What kind of monetary…

In the Heckscher-Ohlin model the factor that a country is abundant in will gain from trade, i.e. its income will increase.  True  False

After reading Dani Rodrick’s article, “Why Does Globalization Fuel Populism?” First, explain how Rodrick defines populism. Second, explain why populism (as he has defined it) struggles in understanding economics and how it creates poor policies.

The gravity model of trade describes an exact physical relationship between trade, distance and size of trading partners.  True  False

What is the theory of country size? How is country size determined? How does country size affect national trade patterns?