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International Sales as Factors of Distance and Knowledge

Organizations that work together naturally share information to maintain their business operations. Keller and Yeaple (2013) discuss the transactional costs associated with embodied (traded intermediates) and disembodied information (direct communication). Their research has implications for multinational firms that require efficient use of information and product transferrence to compete on the global market. Their model provides two ways of analyzing how increased distance reduces sales and why changing technology may influence the dynamics of trade.  Modern advances in telecommunications have positively affected the ability to maintain homeostasis with market trends. Those organizations that engage in research-intensive products rely on   information transference to develop quality products that are well received in the market. The ease of information transference in either embodied or disembodied form impact the strength of operations of multinational firms. For exampl