Question

Consider a directed social network in which the actors are nations. Nation x has a tie to nation y if x sells more to y than y sells to x. (In other words, the ties point in the direction of net trade.) Find appropriate adjectives to describe the nation with the largest indegree and the nation with the largest outdegree.

Choose one of the following to complete the statement below:
a) Largest
b) Smallest
c) Most export-oriented
d) Most import-oriented
e) Poorest
f) Richest

Answer 1

The nation with the largest indegree in a directed social network of net trade is most import-oriented, while the one with the largest outdegree is most export-oriented. Factors influencing trade include economic size, geographic location, and trade history.

Step-by-step explanation:

To analyze a directed social network where nations are actors with ties based on net trade, we would describe the nation with the largest indegree as the most import-oriented, because they receive the most net imports from other nations. In contrast, the nation with the largest outdegree would be described as the most export-oriented, given they have the highest number of ties representing net exports.

Considering the influences on trade such as economic size, geographic location, and trade history, large economies like the United States and Japan, with their capacity for internal trading and fewer nearby trading partners, typically have a lower trade ratio. In contrast, smaller nations, like Sweden, often trade more due to less internal capacity and closer proximity to numerous partners. Additionally, countries may restrict trade to preserve national security, or for cultural reasons, such as Japan might with its rice industry.