Technological developments related mainly to integrated circuits or microelectronics have dramatically decreased the physical size and the price of electronic data processing and transmission equipment and increased the range of their applications in both manufacturing and service industries. For instance, electronic telephone-switching equipment or complicated software require continuous servicing. Besides the described effects on the volume of applications and the changing character of industries and corporations, the international implications of new information and communications technology are of growing interest. In this context, one important fact is the impact on trade and foreign direct investment (FDI). Due to modern telecommunications systems, there will be trade in regions or industries in which FDI alone was practicable in the past. Even Gerald R. Faulhaber made it clear that, for several industries competing in international markets, communications and data processing facilities are necessary because these firms require extensive information flows.