A more simplistic model for this phenomenon assumes a 2-factor, 2-country, 2-goods framework and ultimately invokes Ricardo's theory of comparative advantage; that model was developed by Hecksher and Ohlin.
A popular model for numerical analysis of this phenomenon in a computable general equilibrium framework is called GTAP. One model for this phenomenon emulates the Newtonian law of gravitation, wherein the proportionality constant captures cultural similarities, language links and other intangible properties. A more simplistic model for this phenomenon assumes a 2-factor, 2-country, 2-goods framework and ultimately invokes Ricardo's theory of comparative advantage; that model was developed by Hecksher and Ohlin. For 10 points, identify this economic phenomenon in which people buy, sell, or exchange, commodities and services.
A popular model for numerical analysis of this phenomenon in a computable general equilibrium framework is called GTAP.
trade [accept "international trade" or "free trade"]