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The distance between the USA and Japan is 10173 kilometers and between the USA and China, it is 11640 kilometers. American GDP is approximately equal
The distance between the USA and Japan is 10173 kilometers and between the USA and China, it is 11640 kilometers. American GDP is approximately equal to $21 trillion, Japanese $5 trillion, and Chinese 14 trillion. Use the gravity equation and compute by how much the expected volume of trade between the US and China will exceed the volume of trade between the US and Japan. Assume that the distance elasticity is equal to 1.4
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