Describe the gravity equation in detail

Reference no: EM131007980

Topic: Trade Theories

Detailed Question: International Economics Chapter 6 Problem Set

1. Describe the sources of gains from trade for the consumer in the monopolistic competition model with differentiated products. Hint: there are two mechanisms at work.

2. Describe the gravity equation (for international trade, not physics) in detail and provide the formula.

Reference no: EM131007980

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