This dissertation decomposes bilateral trade flows of goods and services into the effects of physical and linguistic distance. I employ a standard OLS estimation alongside a Poisson Pseudo Maximum Likelihood (PPML) Estimation to deal with specification issues and arrive at the novel result that while the linguistic effect on services is far stronger than that on goods, physical distance hinders trade in goods more than in services. Data is collected from a variety of sources including the OECD BATIS and BTDxE series.