ABSTRACT

Advances in digital technology have driven large decreases in the costs of data transfer and telecommunications. There is a consequent increase in many kinds of international trade. One of the fastest-growing parts of this industry is "remote maintenance" whereby Indian companies debug software for companies in other parts of the world, often taking advantage of time zone differences to offer overnight service.

In the existing literature on trade theory, however, relatively few attempts have been made to address the theme of communications networks and the role of time zones. The main purpose of this book is to illustrate, with simple models of international trade, how the introduction of communications networks and the utilization of time zone differences can affect both the structure of international trade and world welfare. Other technological aspects of recent international trade (e.g., competition between international standards, the impact of switching costs on imported products’ introduction) are also examined.

Although a focus on theoretical trade models, the book will appeal to scholars, policy makers and business units who wish to learn from the recent changes in communications networks and its impact on the global economy. It provides information and suggestions for better policy formulation in the fast-changing world economy.

chapter 1|10 pages

Introduction

part |2 pages

Part I Preliminaries

part |2 pages

Part II Communications networks and time zones

part |2 pages

Part III Network effects and switching costs

chapter 12|10 pages

Direct network effects

chapter 13|9 pages

Indirect network effects

chapter 14|6 pages

Switching costs

chapter 15|11 pages

Foreign brand penetration

part |2 pages

Part IV Cost heterogeneity and trade

chapter 16|12 pages

Increasing costs in product diversification

chapter 18|8 pages

Chamberlinian-Ricardian trade patterns

chapter 19|9 pages

Strategic export policies

chapter 20|3 pages

Concluding remarks