Question

Over the last few​ decades, East Asian economies have increased their share of world GDP.​ Similarly, intra-East Asian tradethat ​is, trade among East Asian nationshas grown as a share of world trade. More than​ that, East Asian countries do an increasing share of their trade with each other. Using the gravity​ model, explain why East Asian countries do an increasing share of their trade with each other.

A. Since the GDP of East Asian countries has​ grown, the product of any two East Asian​ countries' GDP is now larger. And as the gravity model​ predicts, the trade volume between them has grown.
B. The GDP of some East Asian countries has grown faster than​ others; therefore, the difference in GDP between some East Asian countries is now larger. And as the gravity model​ predicts, exports from richer countries to poorer countries have increased.
C. Since the GDP of East Asian countries has​ grown, the ratio of any two East Asian​ countries' GDP is now larger. And as the gravity model​ predicts, the trade volume between them has grown.
D. The GDP of some East Asian countries has grown faster than​ others; therefore, the difference in GDP between some East Asian countries is now larger. And as the gravity model​ predicts, exports from poorer countries to richer countries have increased.

Answer 1

The answer is "Option A".

Step-by-step explanation:

In this question, its markets of Eastern Europe also raised their share in the global GDP. Likewise, the exchange between Asian Countries also risen as a percentage of global commerce in Eastern Asian markets. Furthermore, the nations of East Asia are interested primarily in trade. As the Gross domestic product of Eastern Asian countries has risen, the output of any wardrobe Asian nations is now greater, as per the gravity model, as well as the rate of exchange between them, has increased as the gravity model predicts. Eastern Asia has a rising percentage of its trade with one another.