Submitted by: Submitted by Nekw
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Pages: 2
Category: Business and Industry
Date Submitted: 01/13/2013 03:30 PM
WATERCOOLER DISCUSSION:
Market and Networks in International Trade:
Name: Wisdom Ugwuegbu
Date: 11/19/2012
APA Citation of the source:
Part 1: A synopsis of the Article. (2-3 paragraphs or 100-150 words)
This article talked about the effect of geographic distance in trade in spite of the improvement of technology and the implementation various trade agreement by world organizations. The article is of the opinion that globalization has really not solved this problem as various economist and business leaders would want us to think.
The increasing distance sensitivity of trade may be caused by a shift in its composition towards good requiring more extensive information exchange and personal interaction between buyers and sellers.
The shift was observed to have nullified the effect of falling transportation cost as a result of improved technology.
The author was able to explain it finding by referencing various research why the decline in trade is happening which is being attributed to distance and the intermittent rising cost of energy.
Using data’s of over half a century of international trade, the paper the articles examine how relative the importance of distance has developed over time.
Part 2: Analysis base on the course topic of Business operations in the US and abroad:
This article do relate with the course we doing right in many ways, from the effect of globalization which most American feels is driving the economy bankrupt to various free trade agreement .
The article talked about foreign language and colonial ties between two trading partners or on the other hand which we call understanding the culture of other countries before doing business international.
Reference:
Hakanson, L, &Dow D. (2012).Markets and Network in International Trade: On the Role of Distances in Globalization. Management International Review (MIR), 52(6), 761-789.doi:10.1007/S11575-012-0142-3