PART A - Answer the following 4 questions worth 10 marks each: IMPORTANT: For questions in Part A state whether the statements are TRUE or FALSE and briefly elaborate with a relevant explanation why you believe them to be TRUE or FALSE. Marking TRUE or FALSE, but not providing a correct explanation gains you zero marks. Q1. Mexico is 9,442 km away from Germany, while Indonesia is 11,004 km away from Germany. Mexico's GDP is 1.269 trillion USD while Indonesia's GDP is 1.119 trillion USD (2019). Based on this information, the Gravity model would predict that Germany would trade more with Mexico than with Indonesia? Q2. UK residents taking out insurance policies with foreign companies is a Credit on the financial account of UK's balance of payments. Q3. If a country (say the UK) has 900 units of labour available, can produce two goods (cars and PCs) and the unit labour requirement in car production is 5 while in PCs production it is 2, the opportunity cost of cars in terms of PCs would be 2.5. Q4. If Argentina has relatively more land per worker, and Switzerland has relatively more capital per worker, then if trade began between these two countries the relative price of the land-intensive product would increase in Switzerland