Mexico and Brazil have very different trading patterns. Mexico trades mainly with the United States and Brazil trades about equally with the United States and with the European Union. Mexico does much more trade relative to its GDP. These differences can be explained via the gravity model. Which of the following equations is the most general form of the gravity model? O A. Ti = AXY, XDj. OB. Y XY O C. Ya xyb OD. Ti = AX Dij Ti = Ax Ti = Ax Evaluate the following statement: Mexico is quite close to the U.S., but it is far from the European Union (E.U.). 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. Do you agree or disagree? Based on the gravity model, I would O A. agree. The gravity model predicts trade volume is proportional to the product of the GDPs of the trading partners and inversely related to the distance from each other. O B. disagree. The gravity model predicts that trade volume is proportional to the ratio of the GDPs of the trading partners. The larger the difference in size, the larger the ratio, and the greater the trade volume. O C. agree. The gravity model predicts trade volume is proportional to the product of the GDPs of the trading partners and directly related to the distance from each other. O D. disagree. The larger the difference in size the more the countries will trade. Since Mexico is much smaller than the U.S., it makes sense that it trades largely with the U.S. Brazil is a much larger economy; therefore, it splits its trade with other large economies, such as the U.S. and the E.U