What is the theory of country size? How is country size determined? How does country size affect national trade patterns?
Answer: The theory of country size says that countries with large land areas are more likely to have varied climates and an assortment of natural resources than smaller countries, thus making them more self-sufficient. Although land area is the most obvious way of measuring a country's size, countries also can be compared on the basis of economic size. Distance to foreign markets affects trade patterns in large and small countries differently. Normally, the farther the distance, the higher the transport costs, the longer the inventory carrying time, and the greater the uncertainty and unreliability of timely product delivery. In addition, large countries' production and market centers are more likely to be located at a greater distance from other countries, raising the transport costs of foreign trade.