The Ingenious Theory of Interstellar Trade

This paper extends interplanetary trade theory to an interstellar setting. It is chiefly concerned with the following question: How should interest charges on goods in transit be computed when the goods travel at speeds close to the actual speed of light? This is a problem because the time taken in transit will appear less to an observer travelling with the goods than to a stationary observer. An innovative and ingenious solution is derived from the economic theory, and two useless but TRUE theorems are proved. The interstellar trade would happen in such a way that two time frames must be considered namely that of the stationary observer whose time runs faster compared to the time frame of the observer in transit The interest in a given trade is purely based on the time taken for the debtor to pay the amount, once the goods have been delivered by the seller. But, in case of interstellar trade, the interest to be calculated in between two time frames would lead to the question of which time frame to be considered and moreover, the time taken for the goods to reach the destination is signicantly prolonged compared to the interplanetary trade, which means, even the slightest variations in the interest rate would be magnied. Apart from this, various new factors arise while calculating the interest. The factors include the time value of money, and the risk of variation in demand for goods, the risk of interspace accidents causing loss of the goods and the rate of perish-ability in case of organic goods. The first two factors considered, for which the time frame of the stationary observer is considered and the factors such as the risk of accidents and the rate of perish-ability of the goods are considered based on the time frame of the observer in transit's point of view. The reasons for such considerations and various assumptions on these concepts are dealt in this paper. The theorems that are formulated in this paper would provide the interstellar traders a basic framework on the uniqueness of interstellar trading as opposed to the interplanetary trading. The paper would also tackle problems based on the computation of the perish-ability factor and the risk of variation in demand, as per special relativity. On the whole, a realistic approach based in the current trade policies and accounting standards is given, for a futurist trading spectrum.