Parameters of the model were adjusted for best fit with statistical data from US and International databases. It appears that the competition of new technologies in the USA cannot be analyzed in isolation from the global market. This is indicated by a variant correspondence between the model and data. Simulated and actual rate of loom shipments Fig. 2. The anticipated next step is to expand the model to a heterogeneous market and to spinning technology.
Local markets have different prices on goods.
The major differences will be in labor costs and capital costs. The cost of labor and capital should be negatively correlated in a global market. For example, the cost of labor is high in the USA and low in China, but the cost of capital is low in the USA and relatively high in China. A particular textile technology can exist in a particular local market only if the cost of production is low enough so that the profit is equal or above the average in this kind of production. The cost of production will be subdivided into labor costs and capital costs.