The U.S. government, for example, could back the CDMA technology by promising China that it would support its candidature for the WTO, where eventually China acceded.

3. To what extent do economic factors?

The economic factors are essential in explaining the global leadership of GSM, mainly because of the economies of scale that can be made when dealing with the GSM technology. The economies of scale are evident in terms of the equipment, going as far as the handsets, for example. This means that despite a cost advantage for the CMDA, the economies of scale obtained from the GSM technology can virtually nullify this and make GSM more profitable.

On the Chinese market, economic considerations also played an important role in the competition between GSM and CMDA. First of all, China Unicom had already invested significant sums of money in the development of a wireless network based on GSM, so...
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