2. Choice of Exchange Rate Regime From 1913 to 1939 , world trade flows collapsed, falling in half relative to GDP from about 20 percent to 10 percent. Many historians think this was driven by exogenous increases in transactions costs from rising transport costs and increases in tariffs and quotas. a. Depict the effects of this change using the symmetry/integration diagram: Use the letter A to depict the location of a country in 1913; use the letter B to depict where it would have been in 1939. I b. Discuss how these changes might explain why so many countries abandoned the Gold Standard during the inter-war years