cui 的作业 1:

Answer for Question 1:

The Gravity Model of International Trade suggests that trade between two countries
is positively correlated with the economic size of the countries, and negatively
correlated with the distance between them. Although Ireland and Belgium are EU
member states and closer to the EU market, their trade volume with the United
States is greater. I believe the reasons that may lead to such a situation include:
Firstly, the economic scale of the United States is far greater than any EU
country. According to the 2023 GDP rankings, the GDP of the United States is still
ranked first in the world. Therefore, despite the distance, Ireland is still able
to attract more trade with the U.S.
Additionally, geographically, Ireland is adjacent to the Atlantic Ocean, enabling
direct and efficient maritime trade routes with the United States.
Thirdly, based on trade policy, after the implementation of the OECD's global
corporate tax agreement, a recent report by the Ireland-U.S. Chamber of Commerce
indicates that bilateral trade and investment relations between the U.S. and
Ireland are at an all-time high.
The last point to consider is that the United States and Ireland share a common
language. During the mid-19th century, a large number of Irish people immigrated to
the United States during the "Great Famine," which means there is a transfer and
integration of populations and cultures, these can promote trade, rather than just
based on the expected distance.

Answer for Question 2:

From the International Trade Gravity Model, we can understand that the trade volume
is directly proportional to the overall economic size of two countries and
inversely proportional to the distance between them. Based on this model, it is
clear that as East Asian countries continue to develop and their GDPs grow, it
means that the larger the economic size, the more they can produce, export, and
hence import. Therefore, the larger the GDP, the larger the volume of imports and
exports, the greater the volume of trade.
At the same time, East Asian countries are geographically very close to each other,
so the distance value 'D' in their trade gravity model is small, which directly
leads to an increase in trade. That is to say, it is the existence of distance that
leads to increased transportation costs and time for trade, so the reality is that
the trade costs and time spent by East Asian countries are very low, therefore
increasing the volume of trade between East Asian countries.

Answer for Question 3:

Firstly, the establishment of the European Union has significantly reduced internal
trade barriers within Europe, meaning that trade within Europe has been less
affected by factors such as exchange rates and tariffs, which has greatly
incentivized intra-European trade. A unified and integrated EU market encourages
the free movement of goods, thus making trade within Europe more attractive.
Secondly, history tells us that over the past century, the UK typically imported
raw materials and basic agricultural products from North America, Latin America,
and Asia. Now, however, the trade share of these items has been eroded by high-
value goods.
Furthermore, advancements in technology have altered manufacturing and production
processes. High-value, technologically intensive goods, such as electronics,
require complex supply chains and precise production processes. This means a need
for high-level production supply chains that match these requirements, which can be
found within the EU, where developed countries are clustered. This approach also
helps to minimize transportation costs and production time as much as possible.
Lastly, the nature of global trade has shifted from goods to services. The UK is an
important service-providing economy, and service trade is less affected by
distance.