Equation (2-1) says that trade between any two countries is proportional to the product of their GDPs.
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Equation (2-1) says that trade between any two countries is proportional to the product of their GDPs. Does this mean that if the GDP of every country in the world doubled, world trade would quadruple?
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Related Book For 
International Trade Theory And Policy
ISBN: 978-1292417233
12th Global Edition
Authors: Paul Krugman ,Maurice Obstfeld ,Marc Melitz
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