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Notes by tedichez: It has been observed that expertise in a number of basic production techniques can at times enable firms to enter familiar markets without having to invest much in terms of learning costs.

Notes by tedichez: Compared to the 1970s, the length of product and innovation cycles has been cut in half (Leker 2001). This has increased competitive pressure immensely: in order to make the investments on research and development profitable, large quantities of new produ

Notes by tedichez: After having looked at policy changes that led to a reduction in international interaction costs and that made globalisation thus possible, we now turn to have a look at economic and technological factors that have had similar effects.

Notes by tedichez: The importance of the service sector has steadily grown over the last couple of decades. In the most advanced economies, its share of the gross national product accounts for 67,2% of gross national product (for the OECD members as of 2001, OECD 2004).

Notes by tedichez: Foreign Direct Investment can be impeded by a host of non-tariff barriers: lengthy permission procedures are only the most obvious example. Needless to say, these can make foreign direct investments unattractive and they thus function as a protection of d