Subscribe to our free, weekly email newsletter!

Untethered trade

By Patrick Burnson, Executive Editor
March 02, 2011

Something we don’t often recognize is how much the Internet has joined steamships, railroads, aircraft, trucks, and pipelines as a primary mode of transport. Indeed, for a steadily expanding range of digitized products and services, the Internet is now the preferred delivery mode. 

Jock O’Connell, Beacon Economics’ International Trade Adviser, said this development raises some interesting but seldom examined issues.

“The emergence of a frictionless and essentially cost-free means of delivering goods and services worldwide forces economists to rethink some fundamental notions of how distance and time relate to the concept of comparative advantage,” he said. “For trade statisticians and ultimately for policymakers, the fact that the Internet is essentially free of customs posts greatly muddies the cross-border trade data that informs trade policy.”

According to O’Connell, trade statisticians worldwide have been struggling with uneven success to devise ways of quantifying trade in products that not only elude the customary mechanisms for monitoring trade but which frequently defy easy classification.

“A recording of Elgar’s Enigma Variations on a CD clearly qualifies as a good,” he said. “But the very same music downloaded from iTunes to a portable media player is widely regarded as a service. Similarly, what do we make of a software program written in California that is downloaded by an Austrian customer from a server located in Singapore?”

O’Connell maintains that unless the means are found to track the more “ethereal” forms of commerce taking place via the Internet and to produce accurate, detailed statistics on a timely basis, debates over the virtues of free trade and globalization could become even more untethered from any empirical grounding than they already are.

For more articles on global trade click here.

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.

Article Topics

Blogs · Global Trade · Transportation · Trade · All topics


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA