Stephen Gallo: Brexit 'Unscrambles' European Trade Omelet

The video discusses the trade gravity model in Europe, highlighting how large, wealthy economies tend to trade more with each other, while smaller, poorer economies trade less, especially when distant. It explores the potential impact of Brexit on trade flows, suggesting that it could complicate trade and create political risks within the EU. The discussion emphasizes the importance of free trade for economic growth and the potential consequences if trade agreements like Schengen break down.

In what ways do large economies in Europe trade with each other?

What could be the consequences of a breakdown in trade relationships within Europe?