The Distributional and Allocative Impacts of Virtual Labor Mobility across Time Zones through Communication Networks

Using a specific‐factors' model, with two goods (a shift‐working good and a non‐shift‐working good), three factors (capital specific to shift‐working, land specific to non‐shift‐working and labor) and two countries (Home and Foreign), which are located in different time zones, we highlight the impact of trade in labor services via communication networks on factor prices and production patterns. If two countries are identical in size, then under free trade in labor services, all workers work only in their local daytime, and night shift in each country is performed by imported labor services supplied by residents of the other country in their local daytime. Night‐time wage becomes the same as daytime wage (a wage equalization result). Other factor prices are also equalized. In both countries, capital rental rate increases, while land rent decreases. However, if two countries are different in size, trade in labor services does not equalize wages: in the large country, wages for night‐shift workers are higher than daytime wages and some residents work at night; in the small country, daytime wages become higher than night‐time wages and no one works at night, and night‐shift work is done by imported labor services from the large country. Land rent in the small country decreases. Land rent in the large country may or may not decrease, but it is always higher than in the small country. Capital rental rates in both countries are equalized and increase.     

THE MARKET SELECTS THE WRONG FIRMS IN THE LONG RUN*

We consider the effects of free entry on the market structure and social welfare of an asymmetric Cournot oligopoly. Even if we allow for the existence of different types of firms initially, only one type (in almost all cases) can survive in the long run. Free entry leads an economy to a symmetric equilibrium, in which the excess entry theorem holds. Further, we consider the socially optimal policy for this economy. In cases of either (i) a concave demand (which implies strategic substitutability) or (ii) strategic complementarity (which implies a convex demand), the type of firms that should remain in the market to achieve social optimality does not necessarily coincide with the type of firms that will survive in the long run. The market may select not only the wrong number of firms but also the wrong type of firms in the long run.     

A new impetus for endogenous growth: R&D offshoring via virtual labor mobility

We develop a simple North–South model of quality ladders to show that the virtual mobility of labor across time zones, facilitated by the advance in communication technology, can raise the endogenous growth rate of the world economy. The unique balanced growth rate is increasing in the endowments of skilled labor in both countries and decreasing in the rate of impatience. Moreover, we find that partial R&D offshoring to the South has initially a negative effect on the level of skilled wages in the North, but this is compensated for by its positive effect on the growth rate in both North and South.     

Building business through partnerships

In a request-driven environment, human resources can be pressured to "do a program," which solves the immediate problem. Such procedures result in a reactive mode of operation, which may not address the more global needs of the organization.     

On the existence of single-price equilibria in a matching model with divisible money and production cost

The present paper investigates Zhou's (1999) money search model, where money is divisible, agents can hold any amount of money and production of goods is costly, and presents a sufficient condition, expressed in terms of exogenously given parameters, for the existence of single-price equilibria.     

Japan-India civil nuclear energy cooperation: prospects and concerns

India is a non-party to the Nuclear Non-Proliferation Treaty. However, India argues its impeccable non-proliferation record shows the country as a responsible state with advanced nuclear technology that should be allowed to acquire the same benefits and advantages of nuclear energy cooperation under the existing global nuclear non-proliferation regime. This statement needs careful analysis of whether or not the Japan-India civil nuclear energy cooperation agreement could be successfully concluded and acceded to. This paper elaborates on the possibilities and concerns related to the matter from a politico-legal point of view, in order to materialise a mutually satisfactory and legitimate bilateral agreement. The scope of possible civil nuclear energy cooperation may be limited, probably not exceeding the level that the US has agreed with India, right now. It is, however, a necessary initial step for dramatically reconstructing our relationship, which may allow for greater cooperation in the near future.