Friction in business and credit as a lubricant of commerce.(selected topic)

Business Credit, March, 2005 by Sanchez, Abe WalkingBear

British-born economist Ronald H. Coase was awarded the Nobel Prize in 1991 for his work on transaction costs and functioning of the economy. Just 21 when he wrote The Problem of Social Cost, Coase's Law dealt with the proper working of industrial companies in the pre-information era:

"A company must grow to the point where it is self sufficient in all its core requirements."--Coase's Law

This was the old GM and Ford model that required ownership or control of rubber plantations, glass companies, trains, ships and steel companies ... all so that the assembly lines would run smoothly. And then the Information Age happened. Today, via the Internet, we have the ability to locate and track goods and services. Today businesses can focus on what they...