In a study about trade between Mercosur and the European Union, researchers applied a gravity trade model to see how recent agreements affected trade flows. They looked at 20 countries, including Mercosur and EU members. By analyzing data over time, they found that certain factors like infrastructure, income gaps, and exchange rates play significant roles in determining trade between these regions. The fixed effect model was chosen as the better explanation over the random effects model. These findings show that more than just distance influences trade between Mercosur and the EU, with things like infrastructure and economic differences also playing important roles.