The General Theory of Trade Relativity

Abstract

This paper is interested to apply the general theory of relativity develop by Albert Einstein (1916) into the analysis of international trade. We like to use this great theory of physics to explain the behavior of international trade among nations, at the same time, how a large country with a constant expansion of its economic mass (Ð) can generate a strong trade gravity attraction around it with the traditional trade partners and possible new trade partners. It is possible to be observed in the case of U.S. and China economy. Finally, we like to probe also if trade blocs request at less one of its member need to have a large economic mass (Ð) to generate a strong trade gravity to attract the rest of members into the same trade bloc, we suggest the uses of two trade blocs follow by NAFTA and ASEAN.