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Jawaharlal Nehru Trust Port

In principle, international trade flows according to the laws of gravity. In that sense, trade is determined by two factors: the Gross Domestic Products and the geographical distance between trading partners. To calculate the trading possibilities based on this reasoning, economists use what is known as the gravity model.

 

Straightforwardly, this model suggests that the greater the economic mass (GDP) of two countries and the shorter the distance between them, the greater the amount of goods and services they will be able to exchange as they engage in trade.

Considering the distance factor in this formula, Nearshore economies in the Caribbean, Central and South American region (henceforth referred to as CCESAR, pronounced si’zār, like the Roman emperor) are strategically positioned to trade with the United States, the country that, amid the emergence of other super powers, remains the most important economic force in the world.

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Read full article at NearshoreAmericas.com