The Institutional Framework

Trade can be more complicated than we think. What happens when two countries define the same product differently or if they set out different criteria to check that a product is safe? Let us think, for example, of the inconvenience as a traveller in havin 15 different types of electrical outlet plugs in the world, or the enormous infrastructure investment required for train cargo and passengers to travel across the border between two countries that have different track gauge. Then consider the benefits of being able to plug in and use a USB key with any computer worldwide or the advantages of standard cables, standard operating systems or the standard size of a credit card.