TUTORIAL 2
World Trade: An Overview
Questions
1.
Write out the Gravity Model. Explain the use of the Gravity Model. (For CN Quiz)
2.
Describe how the value of trade between any two countries depends on the size of these
countries’ economies and explain the reasons for that relationship.
3.
Discuss how distance and borders reduce trade.
4.
"China's trade with the African continent" has experienced a "50 percent increase" in recent
years. They don’t have any trade agreement. How would you explain this increase by
relating it to the gravity model.
5.
From your opinion, explain two benefits of offshoring.
6.
Why do trade agreements create an anomaly with respect to the basic relationships with
income and distance in the gravity model?
7.
Explain how the mix of goods and services that are traded internationally has changed over
time.