What does GMOT mean in UNCLASSIFIED

The Gravity Model of Trade is an economic model that explains the pattern of international trade between two countries based on the concept of gravity. The gravity model or law suggests that the greater the economic size of each country, and/or the closer their geographic proximity to one another, the more likely they are to engage in trade.

The Gravity Model suggests that two countries will experience trade with each other if their respective GDP (Gross Domestic Product) numbers are high and they are geographically close. Put simply, economic mass (as measured by GDP) creates a "gravitational pull" between two nations, leading them to interact and exchange goods and services across borders.

The original Gravity Model was first proposed by German economist Walter Isard in 1956. Since then, it has been refined and widely adopted amongst economists for its ability to predict international trading patterns.

The Gravity Model uses several factors when predicting trading patterns between two nations, such as GDP per capita, population size, distance between both nations, transportation infrastructure between both nations etc.

Although every prediction from the gravity model cannot be 100% accurate in every case due to variables outside of its considerations, overall it has been highly effective in predicting potential trading partners by utilizing mathematically derived factors such as geographical distance and economic size.

No – this model can be applied to all types of goods and services including tourism or services provided over digital networks such as e-commerce or video streaming platforms.

Yes - There are some inherent limitations in using this model which rely on physical characteristics being a predominant factor in decision making relating to trade - political ties/alliances, cultural relations etc., can play an important role too which may not be accounted for adequately in this type of analysis. Additionally, even with similar GDPs, different language barriers may impede successful trade.

Yes - One key alternative would be CEPII's BACI International Trade Database which uses machine learning algorithms to build better predictive models than traditional gravity models. This method utilizes millions of data points from multiple sources which often provides more comprehensive conclusions about future trading trends than a simple gravitational approach.

Today, gravity models are used by economists and policymakers around the world for forecasting purposes. It helps them determine who their most profitable trading partners could potentially be based on various metrics such as proximity and economic power relative to other potential partners.