The gravity equation below says that trade between any two countries is proportional to the product of their GDPs. Does this mean that if the GDP of every country in the world doubled, world trade would quadruple?

Think about your own interests, skills, and opportunities. In what areas do you potentially have a comparative  advantage over your peers or co-workers? Are there goods or services you could provide to others more efficiently? How could you maximize your advantages to achieve positive gains from trade in your daily exchanges and relationships?

Listen carefully to the podcast titled 'Is America losing faith in Free Trade?. What would help explain why support for trade liberalisation in places such as the United States has decreased in the past decade even though economists argue free trade is beneficial for the economy? The benefits and costs of trade are unequally distributed within society. The benefits of free trade tends to fall on people who are less well off, who either lose their jobs or lose wages to other countries which angers the wealthy investors. O The wage gap between high and low-skilled workers is closing which decreases levels of productivity. The benefits of free trade tend to fall on people who are less well off, who either lose their jobs or lose wages to other countries.

If a certain trade is good for one country, it must be good for the other country?

According to the Heckscher-Ohlin model, free trade would lead to an equalization of wage rate internationally. Explain why we do not observe that result in the real world, where, for instance, there is great discrepancy in wage rate between developed and developing countries

Opponents of free trade zones might use this map to argue which of the following points?