The new distributed digital technology world trade and MNEs: another step in the inventive process
by Tamir Agmon
European J. of International Management (EJIM), Vol. 15, No. 1, 2021

Abstract: 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.

Online publication date: Mon, 21-Dec-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the European J. of International Management (EJIM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email