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Chapter 2(?Answers to Textbook Problems
We saw that not only is GDP important in explaining how much two countries trade, but also, distance is crucial. Given its remoteness, Australia faces relatively high costs of transporting imports and exports, thereby reducing the attractiveness of trade. Since Canada has a border with a large economy (the U.S.) and Australia is not near any other major economy, it makes sense that Canada would be more open and Australia more self-reliant.
我们看到,不仅是国内生产总值的重要解释多少两国贸易,但同时,距离是至关重要的。鉴于地处偏远,澳大利亚面临着相对较高的运输成本高,从而减少进口和出口贸易的吸引力。因为加拿大有一个边界有一个很大的经济体(美国),澳大利亚是不靠近任何其他主要经济体。这说明,加拿大将更加开放,澳大利亚更加自力更生。
Mexico is quite close to the U.S., but it is far from the European Union (EU). So it makes sense that it trades largely with the U.S. Brazil is far from both, so its trade is split between the two. Mexico trades more than Brazil in part because it is so close to a major economy (the U.S.) and in part because it is a member of a free trade agreement with a large economy (NAFTA). Brazil is farther away from any large economy and is in a free trade agreement with relatively small countries.
墨西哥很接近美国的,但它远欧盟(EU)。这说明,它的交易在很大程度上与美国巴西,所以其贸易是分为两种。墨西哥交易超过巴西部分是因为它是如此接近一个主要经济体(美国),部分原因是它是一个成员的一个自由贸易协议(NAFTA)的大型经济体。巴西是远离任何大型经济体,也是在一个自由贸易协定与相对较小的国家。
No, if every country’s GDP were to double, world trade would not quadruple. One way to see this using the example from Table 2-2 would simply be to quadruple all the trade flows in 2-2 and also double the GDP in 2-1. We would see that the first line of Table 2-2 would be—, 6.4, 1.6, 1.6. If that were true, Country A would have exported $8 trillion which is equal to its entire GDP. Likewise, it would have imported $8 trillion, meaning it had zero spending on its own goods (highly unlikely). If instead we filled in Table 2-2 as before, by multiplying the appropriate shares of the world economy times a country’s GDP, we would see the first line of Table 2-2 reads—, 3.2, 0.8, 0.8. In this case, 60% of Country A’s GDP i
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