Neckties in the Tropics: a Model of International Trade and Cultural Diversity

Some cultural goods, like clothes and films, are consumed socially and are thus characterized by the same consumption network externalities as languages. At the same time, producers of new cultural goods in any one country draw on the stock of ideas generated by previous cultural production in all countries. For such goods, costless trade and communication tend to lead to the dominance of one cultural style, increasing utility in the short run but reducing quality and generating cultural stagnation in the long run. Increasing trade costs while keeping communication costs low may reduce welfare by stimulating production of cultural goods that are “compatible†with the dominant style, thereby capturing consumption network externalities, but that add little to the stock of usable ideas. Our two-country analysis suggests a reform of cultural policy whereby import restrictions in the smaller country are replaced by subsidies to the fixed costs of production of “authentic†new cultural goods, funded by contributions from the larger countryGains from trade; Cultural goods; Diversity; Network externalities

Neckties in the Tropics: A Model of International Trade and Cultural Diversity

Some cultural goods, like clothes and films, are consumed socially and are thus characterized by the same consumption network externalities as languages. At the same time, producers of new cultural goods in any one country draw on the stock of ideas generated by previous cultural production in all countries. For such goods, costless trade and communication tend to lead to the dominance of one cultural style, increasing utility in the short run but reducing quality and generating cultural stagnation in the long run. Increasing trade costs while keeping communication costs low may reduce welfare by stimulating production of cultural goods that are "compatible" with the dominant style, thereby capturing consumption network externalities, but that add little to the stock of usable ideas. A reform of cultural policy suggested by our two-country analysis could be to remove import restrictions in the smaller country and replace them with subsidies to the fixed costs of production of new cultural goods in its traditional style.

Neckties in the Tropics: A Model of International Trade and Cultural Diversity

Some cultural goods, like clothes and films, are consumed socially and are thus characterized by the same consumption network externalities as languages. At the same time, producers of new cultural goods in any one country draw on the stock of ideas generated by previous cultural production in all countries. For such goods, costless trade and communication tend to lead to the dominance of one cultural style, increasing utility in the short run but reducing quality and generating cultural stagnation in the long run. Increasing trade costs while keeping communication costs low may reduce welfare by stimulating production of cultural goods that are compatible with the dominant style, thereby capturing consumption network externalities, but that add little to the stock of usable ideas. Our two-country analysis suggests a reform of cultural policy whereby import restrictions in the smaller country are removed, and are replaced by subsidies to the fixed costs of production of new cultural goods in its traditional style.consumption network externalities, home market effect, globalization, cultural policy

Improving Physics learning with virtual environments: an example on the phases of water

Usually students have misconceptions on the microscopic structure and behaviour of matter. In order to overcome these difficulties computer-based worlds seem useful to visualize physical and chemical processes allowing for a better conceptual understanding. Since more 3-D virtual environments need to be explored and evaluated in science education, we have built a 3-D virtual environment – “Virtual Water” – to support the learning of Physics and Chemistry at the final high school and first-year university levels. It is centered in the microscopic structure of water and explores concepts related to water phases and the transitions between them.Usually students have misconceptions on the microscopic structure and behaviour of matter. In order to overcome these difficulties computer-based worlds seem useful to visualize physical and chemical processes allowing for a better conceptual understanding. Since more 3-D virtual environments need to be explored and evaluated in science education, we have built a 3-D virtual environment – “Virtual Water” – to support the learning of Physics and Chemistry at the final high school and first-year university levels. It is centered in the microscopic structure of water and explores concepts related to water phases and the transitions between them

Improving Physics learning with virtual environments: an example on the phases of water

Usually students have misconceptions on the microscopic structure and behaviour of matter. In order to overcome these difficulties computer-based worlds seem useful to visualize physical and chemical processes allowing for a better conceptualunderstanding. Since more 3-D virtual environments need to be explored and evaluatedin science education, we have built a 3-D virtual environment – “Virtual Water” – tosupport the learning of Physics and Chemistry at the final high school and first-yearuniversity levels. It is centered in the microscopic structure of water and exploresconcepts related to water phases and the transitions between them.Usually students have misconceptions on the microscopic structure and behaviour of matter. In order to overcome these difficulties computer-based worlds seem useful to visualize physical and chemical processes allowing for a better conceptualunderstanding. Since more 3-D virtual environments need to be explored and evaluatedin science education, we have built a 3-D virtual environment – “Virtual Water” – tosupport the learning of Physics and Chemistry at the final high school and first-yearuniversity levels. It is centered in the microscopic structure of water and exploresconcepts related to water phases and the transitions between them

Information and Globalization: Wage Co-Movements, Labor Demand Elasticity, and Conventional Trade Liberalization

We model home country familiarity with business opportunities in a foreign country as a parameter in a matching process between domestic and foreign firms. We show that as familiarity increases the effect of relative national labor supplies on relative national wages declines, the elasticity of domestic labor demand increases, and the extent of pass-through' of trade tax changes to home wages increases. Since the volume of trade is increasing in familiarity, trade liberalization has a greater impact on wages when the initial volume of trade is greater, all else equal. As familiarity becomes complete, the results of the 2 x 2 Heckscher-Ohlin-Samuelson model are obtained: relative national wages are fixed by trade taxes independent of relative national labor supplies, domestic labor demand is infinitely elastic, and pass-through of tax changes to wages is complete' in the sense that it is determined entirely by production technology and no arbitrage opportunities remain.

Neckties in the Tropics: A Model of International Trade and Cultural Diversity

Some cultural goods, like clothes and films, are consumed socially and are thus characterized by the same consumption network externalities as languages. At the same time, producers of new cultural goods in any one country draw on the stock of ideas generated by previous cultural production in all countries. For such goods, costless trade and communication tend to lead to the dominance of one cultural style, increasing utility in the short run but reducing quality and generating cultural stagnation in the long run. Increasing trade costs while keeping communication costs low may reduce welfare by stimulating production of cultural goods that are “compatible” with the dominant style, thereby capturing consumption network externalities, but that add little to the stock of usable ideas. Our two-country analysis suggests a reform of cultural policy whereby import restrictions in the smaller country are removed, and are replaced by subsidies to the fixed costs of production of new cultural goods in its traditional style