ABSTRACT
This chapter introduces the network theory, which is the main lens through which the author will analyze the future course of free trade and the world economy. Since traditional economic and political theories no longer seem capable of clearly presenting the issues involved, the author examines the major tenets of network theory and apply them to the analysis of the global trading system. The theory is attractive due to its flexibility and its ability to actualize clearly structural patterns from a relational perspective with nodes and links. The author designs the network theory to include the following four points: (1) collision between inner and outer networks, (2) network power, (3) network structure, and (4) communication patterns among nodes within a network. Some network tools are newly developed to help us better understand the existing networks in the world.
