Which of the following postulates the Gravity Model correctly ?
1
The smaller and the closer the two countries are, the smaller the volume of trade between them is expected to be
2
The larger and the closer the two countries are, the larger the volume of trade between them is expected to be.
3
The larger and the closer the two countries are, the smaller the volume of trade between them is expected to be
4
More than one of the above
5
None of the above