This paper explores the role of networks and search in international trade, particularly for differentiated products. It argues that proximity and common language/colonial ties are more important for differentiated products than for homogeneous products traded on organized exchanges, and that search barriers are higher for differentiated products. The paper presents evidence from a gravity model of trade, showing that proximity and common language/colonial ties have greater effects on trade in differentiated products. It also discusses alternative explanations for these findings, including the role of transportation costs and industry characteristics. The paper concludes that the network/search view of trade is supported by the evidence, and suggests further research to formalize this view in a general equilibrium model. The findings have implications for trade policy and the role of personal contacts in international trade.This paper explores the role of networks and search in international trade, particularly for differentiated products. It argues that proximity and common language/colonial ties are more important for differentiated products than for homogeneous products traded on organized exchanges, and that search barriers are higher for differentiated products. The paper presents evidence from a gravity model of trade, showing that proximity and common language/colonial ties have greater effects on trade in differentiated products. It also discusses alternative explanations for these findings, including the role of transportation costs and industry characteristics. The paper concludes that the network/search view of trade is supported by the evidence, and suggests further research to formalize this view in a general equilibrium model. The findings have implications for trade policy and the role of personal contacts in international trade.