TY - JOUR
T1 - The new distributed digital technology world trade and MNEs
T2 - Another step in the inventive process
AU - Agmon, Tamir
N1 - Publisher Copyright:
© 2021 Inderscience Enterprises Ltd.
PY - 2021
Y1 - 2021
N2 - Major innovations are about reducing transactions costs. This has been true since the beginning of the Industrial Revolution and it continues along the inventive process in the last 220 years. The innovative technology of blockchains and cryptocurrencies with smart contracts (distributed digital technology) has a potential for substantial reduction of transactions costs that are rooted in human nature. Like earlier transformational innovative technologies, such as the steam locomotive and the internet, the new distributed digital technology may create disruptions in the market today, but if successful it will increase welfare by transforming the way that people transact in the market in the future. The major feature of the new digital technology is that it makes it possible for individuals to match their supply and demand without intervention of organisations like firms, financial intermediaries and regulating agencies. The new digital technology gets us closer to the neoclassical perfect market model. Distributed digital technology progresses in a step-by-step fashion. The first step was the Bitcoin: electronic peer-to-peer cash transfers without the need for central regulations. A number of services, particularly those that can be traded digitally, are next in line. Two potential applications of distributed digital applications are global trade in services and to MNEs.
AB - Major innovations are about reducing transactions costs. This has been true since the beginning of the Industrial Revolution and it continues along the inventive process in the last 220 years. The innovative technology of blockchains and cryptocurrencies with smart contracts (distributed digital technology) has a potential for substantial reduction of transactions costs that are rooted in human nature. Like earlier transformational innovative technologies, such as the steam locomotive and the internet, the new distributed digital technology may create disruptions in the market today, but if successful it will increase welfare by transforming the way that people transact in the market in the future. The major feature of the new digital technology is that it makes it possible for individuals to match their supply and demand without intervention of organisations like firms, financial intermediaries and regulating agencies. The new digital technology gets us closer to the neoclassical perfect market model. Distributed digital technology progresses in a step-by-step fashion. The first step was the Bitcoin: electronic peer-to-peer cash transfers without the need for central regulations. A number of services, particularly those that can be traded digitally, are next in line. Two potential applications of distributed digital applications are global trade in services and to MNEs.
KW - Distributed digital technology
KW - Global trade in services
KW - Multinational enterprises
KW - Transactions cost
UR - http://www.scopus.com/inward/record.url?scp=85098320416&partnerID=8YFLogxK
U2 - 10.1504/EJIM.2021.111945
DO - 10.1504/EJIM.2021.111945
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AN - SCOPUS:85098320416
SN - 1751-6757
VL - 15
SP - 135
EP - 145
JO - European Journal of International Management
JF - European Journal of International Management
IS - 1
ER -