The Economic Effects of Time Zones in the United States, the United Kingdom, China, and Australia

Open Access
Author:
Buckley, Amy Lynn
Area of Honors:
Accounting
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Robert Alexander Novack, Thesis Supervisor
  • Orie Edwin Barron, Honors Advisor
Keywords:
  • Time zones
  • continuity effect
  • synchronicity effect
  • United States
  • United Kingdom
  • China
  • Australia
Abstract:
The purpose of this thesis is to analyze the economic effects of the time zones of the United States, the United Kingdom, China, and Australia and to determine whether these countries’ time zones are economically advantageous for them. This thesis explores the history of time zones and the reasoning behind the system of current time zones in the United States, the United Kingdom, China, and Australia. It studies the continuity effect, which derives economic benefit from service trade with distant economic time zones, and the synchronicity effect, which increases costs when goods and service trade occur in areas with large time zone differences because of coordination problems. It looks at the overall economic effect of the continuity and synchronization effects and analyzes how they impact the previously listed countries economically. This thesis also looks at specific benefits and costs each country experiences as a result of its time zone(s) and concludes on the overall economic effect of each country’s system of time zones.