Abstract
Using a two-factor (labour and capital), two-good (shift-working and non-shift-working commodities) model with two countries (Home and Foreign), which are located in different time zones, we highlight the impact of trade in labour services (via communications networks) on the comparative advantage of countries capable of such trade. It is shown that a comparative advantage in a shift-working commodity is held by pairs of countries in different time zones and connected through a good communication network. Concerning factor prices, if the shift-working commodity is capital (respectively, labour) intensive, the wage rate for day-shift labour will decrease (respectively, increase) as a result of trade in labour services. It is also demonstrated that this labour service utilization is mutual: some of Home's day-shift labour will be utilized for the Foreign night shift, and vice versa. Thus, periodic trade in labour services occurs across countries.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
