Foreign direct investment and wages in domestic firms in Ireland: Productivity spillovers versus labour‐market crowding out

There is a large literature on the positive spillovers frequently thought to be associated with inward foreign direct investment. Aitken et al. (1996 Aitken, BJ, Harrison, AE and Lipsey, RE. (1996). Wages and foreign ownership: a comparative study of Mexico, Venezuela, and the United States. Journal of International Economics, 40: pp. 345–71 [Google Scholar]) identify several cases, however, where inward FDI appears to have reduced wages in domestic firms. They suggest that this might arise either because foreign firms increase the degree of product‐market competition that domestic firms face, or because they poach the best workers from domestic firms. We concentrate on the second effect, arguing that the first is unlikely to arise in the Irish case to which our data pertain. In a theoretical section we show that the labour‐market poaching effect cannot generate the results postulated if labour markets are competitive and production functions are of the Cobb–Douglas variety, but that it can arise if production functions display higher elasticities of substitution. In an empirical section based on a sample of larger Irish firms we show that, consistent with our theoretical model, foreign presence has different effects on wages and productivity in domestic exporting and non‐exporting establishments.     

Trade and trade policy with differentiated products: A Chamberlinian – Ricardian model. A comment

Abstract

This paper shows that the results of Venables (1987 Venables, A. 1987. Trade and trade policy with differentiated products: a Chamberlinian – Ricardian model. The Economic Journal, 97: 700–717. [Crossref], [Web of Science ®] , [Google Scholar]) depend critically on the assumption that there are no fixed costs of trade. The introduction of fixed costs of exporting, while making the model more consistent with the empirical evidence, leads to the opposite conclusion that technological progress in one country cannot harm the welfare of its trading partner. However, the results can be obtained in a richer setting with heterogeneous firms.     

Materiality and the comfort of things: drinks,dining and discussion with Daniel Miller

Daniel Miller is Professor of Material Culture at University College London. Miller’s foundational work in consumption studies, material culture studies and the anthropology of materiality has made profound contributions to our understanding of consumption, markets and culture. He is particularly known for Material Culture and Mass Consumption (1987 Miller, D. 1987. Material culture and mass consumption, Oxford: Blackwell.  [Google Scholar]), A Theory of Shopping (1998 Miller, D. 1998. A theory of shopping, Cambridge: Polity.  [Google Scholar]) and his edited collections Unwrapping Christmas (1995 Miller, D., ed. 1995. Unwrapping Christmas, Oxford: Oxford University Press.  [Google Scholar]), the four‐volume Consumption: Critical Concepts in the Social Sciences (2001 Miller, D., ed. 2001. Consumption: Critical concepts in the social sciences, Vol. 4, London: Routledge.  [Google Scholar]), and Materiality (2005 Miller, D., ed. 2005. Materiality, Durham, NC: Duke University Press. [Crossref] , [Google Scholar]). He is a tremendously prolific scholar and has worked with a large number of doctoral students. His 2008 Miller, D. 2008. The comfort of things, Cambridge: Polity.  [Google Scholar] book, The Comfort of Things, has introduced Miller to a wider audience. This interview took place in London on 25 November 2008.     

Outward foreign direct investment,wage rigidity and unemployment: A computable general equilibrium analysis

Taiwan has started to liberalize its exchange rate and foreign investment policies since the mid 1980s. The subsequent considerable appreciation of its currency and increasing labor cost has stimulated many Taiwanese firms to actively undertake outward foreign direct investment (FDI). The possibility of the industrial hollowing-out induced by the FDI has been a great concern in Taiwan. The purpose of this paper is to establish a computable general equilibrium (CGE) model to investigate the impact of outward FDI by Taiwanese firms on its domestic economy. The efficiency wage theory is incorporated into the analytical framework. This paper first employs regression analysis to show that there exists severe wage rigidity in the labor market of Taiwan. Its simulation analysis then indicates that the outward FDI from Taiwan might reduce its income and employment to some extent. These results reveal that the outward FDI might hurt a distortion-ridden economy, which is consistent with the theoretical findings of Brecher and Choudhri (1987 Brecher, R. A. and Choudhri, E. U. 1987. International migration versus foreign investment in the presence of unemployment. Journal of International Economics, 23: 329–342.  [Google Scholar]) and Basu (1998 Basu, B. 1998. Efficiency wages, unemployment and international factor movements. Journal of International Trade & Economic Development, 7: 317–338. [Taylor & Francis Online] , [Google Scholar]). However, it seems that the outward FDI could account for only a very small part of the recent increase in Taiwan's unemployment level.     

Modeling of FDI in business services: Additional effects in case of Ukraine's European integration

To analyze Ukraine's deep and comprehensive integration with the EU, we develop a multi-regional general-equilibrium simulation model incorporating heterogeneous firms and Foreign Direct Investment (FDI) in business services. This allows for consideration of (a) trade growth in new varieties; (b) aggregate productivity changes attributed to reallocation of resources across and within an industry; and (c) productivity growth in manufacturing due to increased access to business services. The results indicate relatively small gains for the EU, whereas Ukraine benefits with a welfare increase of over 8%. The deindustrialization impact, previously found by Olekseyuk and Balistreri (2014 Olekseyuk, Z., and E.J. Balistreri. 2014. “Trade Liberalization Gains under Different Trade Theories: A Case Study for Ukraine.” Working Paper 2014-13. Colorado School of Mines, Division of Economics and Business. Golden. [Google Scholar]) in a comparison of different modeling structures, is supported by our findings. Ukraine's welfare gains are higher under an Armington structure compared to monopolistic competition. This is due to a movement of resources into Ukraine's traditional export sectors producing under constant returns. Implementation of the FDI modeling approach and liberalization of barriers to FDI, however, mitigates the deindustrialization impact as multinational firms enter the Ukrainian market. This increases the number of available varieties and, consequently, induces productivity growth of manufacturing sectors due to improved access to business services as critical inputs.     

Drawing on “Producer-Tours”: A Technique for Addressing Consumer Uncertainty Surrounding the Consumption of Fair Trade Food Products?

Despite the global increase in both fair trade sales and awareness, actual market shares of some fair trade products remain disappointing. A number of authors have suggested various reasons for this, including the complexity of the situational context affecting actual purchase behavior (Carrington, Neville, &; Whitwell, 2010 Carrington, J. M., Neville, A. B. and Whitwell, G. J. 2010. Why ethical consumers don't walk their talk: Towards a framework for understanding the gap between the ethical purchase intentions and actual buying behaviour of ethically minded consumers. Journal of Business Ethics, 97: 139–158. [Crossref], [Web of Science ®] , [Google Scholar]), the disconnect between producers and consumers (Dickinson, 2001 Dickinson, M. A. 2001. Utility of no sweat labels for apparel consumers: Profiling label-users and predicting their purchases. Journal of Consumer Affairs, 35(1): 96–119. [Crossref], [Web of Science ®] , [Google Scholar]), and the problems associated with the depersonalization of ethics in mainstream distribution (Bezencon &; Blili, 2011). This article introduces the drawing method into the field of research on fair trade consumption. Using this method, this study explores student perceptions of both fair trade consumers and how fair trade works. In doing so, the drawing method unveiled two potential consumer types; namely, the dreamer and the angel. On this, we argue that our study reveals some of the possibilities inherent in the use of the drawing method to explore uncertainty surrounding fair trade consumption.     

Malaysian Money Demand Function Revisited: The ARDL Approach

ABSTRACT

This article examines the long-run and short-run behavior of the demand for money (M1, M2, and M3) in Malaysia. In this study we used a robust estimation known as the unrestricted error correction model (UECM) and the Bounds test (Pesaran, Shin, &; Smith, 2001 Pesaran, H., Shin, Y. and Smith, R. J. 2001. Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16: 289–326. [Crossref], [Web of Science ®] , [Google Scholar]) to determine if the demand for money is cointegrated with real income, interest rate, and the price level. Prior to the cointegration analysis, we tested whether the demand for money series had undergone any structural breaks due to the 1997 Asian financial crisis using the Gregory–Hansen structural break approach. The study used annual data from 1970 to 2004. The Gregory–Hansen test suggests that the 1997 Asian financial crisis did not have a significant impact on the cointegration relationship between money demand and its determinants. The Bounds test revealed that the demand for M1, M2, and M3 are cointegrated with its determinants at the 1% level of significance. Thus, the long-run demand for money was found to be stable. This implies that monetary targeting may be a useful for the conduct of the monetary policy.     

Commentary: Relative Presence of Business-to-Business Research in the Marketing Literature: Review and Future Directions

In this commentary we reaffirm the position taken by LaPlaca and Katrichis (2009 LaPlaca, P. J. and Katrichis, J. M. 2009. Relative presence of business-to-business research in the marketing literature. Journal of Business-to-Business Marketing, 16(1–2) [Google Scholar]) that there is an underrepresentation of business marketing research in the marketing literature. Our comments highlight the sector size of business marketing in the economy, document the degree of difference on the inherent nature of business versus consumer marketing, compare the relative representation of business versus consumer emphasis in the marketing literature with other subfields, and close by suggesting means for enhancing business marketing research.     

Open trade and skilled and unskilled labor productivity in developing countries: A panel data analysis

Abstract

This paper examines the effect of trade openness on the productivity of skilled and unskilled labor in a group of 36 developing countries using panel data and fixed effect approach. We have developed and utilized an empirical model that readily lends itself to testing the hypothesis posed. Our results support the hypothesis that trade openness has a positive and significant impact on labor productivity for both skilled and unskilled labor in the sample countries. We also observe that the beneficial effect of trade openness is relatively stronger for the skilled labor than the unskilled labor. We conclude that contrary to the claim made by Mayda and Rodrik (2001 Mayda, A. M. and Rodrik, D. 2001. “Why are some people (and countries) more protectionist than others? A cross country analysis”. Mimeo: Harvard University.  [Google Scholar]), skilled workers in developing countries may oppose protectionism. When adjusting for the purchasing power parity, the impact of trade openness on labor productivity, although positive and significant, is not as pronounced as it is for other definitions of openness.     

Long- versus short-term orientation: new perspectives

Long- versus short-term orientation, a national value dimension originally found by Bond among students in 23 countries, became Hofstede's (1991 Hofstede, G. 1991. Cultures and organizations: software of the mind, London: McGraw-Hill.  [Google Scholar]) fifth dimension of national cultures. Recent analyses by Minkov (2007 Minkov, M. 2007. What makes us different and similar: a new interpretation of the World Values Survey and other cross-cultural data, Sofia: Klasika i Stil.  [Google Scholar]) of World Values Survey data, collected from representative samples of national populations, allow the calculation of a new version of this dimension, this time across 93 countries. National scores on the dimension correlate with certain family values, with school results, with business values, with environmental values and, under favorable historical conditions, with economic growth. In 1988 the dimension scores led to a prediction of China's economic success. The new scores allow new predictions for economic developments in different parts of the world.     

Herd Behavior in Latin American Stock Markets

ABSTRACT

This article investigates the presence of herd behavior in Latin American stock markets using the methodologies proposed by Christie and Huang (1995 Christie , W. G. , &; Huang , R. D. ( 1995 ). Following the pied piper: Do individual returns herd around the market? Financial Analysts Journal , 51 ( 4 ), 31 – 37 .[Taylor &; Francis Online] , [Google Scholar]) and Chang, Cheng, and Khorana (2000 Chang , E. C. , Cheng , J. W. , &; Khorana , A. ( 2000 ). An examination of herd behavior in equity markets: An international perspective . Journal of Banking and Finance , 24 ( 10 ), 1651 – 1679 .[Crossref], [Web of Science ®] , [Google Scholar]). Daily closing prices and trading volumes from January 3, 2000 to September 15, 2010 from the stock markets of Argentina, Brazil, Chile, Mexico, and the United States were analyzed. The US market was studied in order to provide a reference for comparison. The shares for which data was collected in each country were those listed in the most representative stock index for each market. It was not possible to establish evidence of herd behavior in any of the five countries studied using the Christie and Huang (1995 Christie , W. G. , &; Huang , R. D. ( 1995 ). Following the pied piper: Do individual returns herd around the market? Financial Analysts Journal , 51 ( 4 ), 31 – 37 .[Taylor &; Francis Online] , [Google Scholar]) method. However, evaluating the data for the entire period using the method proposed by Chang, Cheng, and Khorana (2000 Chang , E. C. , Cheng , J. W. , &; Khorana , A. ( 2000 ). An examination of herd behavior in equity markets: An international perspective . Journal of Banking and Finance , 24 ( 10 ), 1651 – 1679 .[Crossref], [Web of Science ®] , [Google Scholar]) we detected herd behavior in the Chilean market. These results were not affected by the addition of additional exogenous variables representing the September 11 attacks of 2001 and the subprime crisis, or when the effect of the behavior of US shares on other countries was analyzed. Asymmetric herd behavior was detected in the Chilean, United States, Argentinean, and Mexican markets.     

Strategic Alignment,Performance, and Value

ABSTRACT

The paper discusses the reaching of superior value based on strategic alignment and the adoption of performance measurement systematics, which are based on multiple and integrated perspectives, using primary data obtained through the survey of companies of high complexity and impact in the Brazilian economy. The operationalization was developed from the adoption of multivariate analysis, which revealed the existence of correlations between the variables studied, reinforcing assumptions about reaching superior value based on the improvement of the mechanisms that support the strategic management dimensions with the backdrop of performance management practices based on the principles of Kaplan and Norton (2001 Kaplan , R. S. , and Norton , D. P. (2001). Organização Orientada para a Estratégia . Rio de Janeiro : Campus. [Google Scholar]) for organizations focused on strategy and the Balanced Scorecard approach. The findings confirm the importance of the association among strategic alignment vectors to reach a superior value and the existence of different clusters of organizations dedicated to reach and support value, mainly through combining the organization's relational capabilities (Soft Skills). The study deepens the discussion on strategic alignment of organizations through the introduction and testing of the Institutional Steering, Performance Maturity, and Balanced Performance constructs.     

Consumer receptiveness to international retail expansion: a cross-cultural study of perceptions of social and economic influence of foreign retailers

Guided by the work of Samiee (1993 Samiee, S.1993. “Retailing and Channel Considerations in Developing Countries: A Review and Research Propositions.” Journal of Business Research27 (2): 103–129. doi:10.1016/0148-2963(93)90018-K.[Crossref], [Web of Science ®] , [Google Scholar]. Journal of Business Research, 27 (2): 103–129), Sakarya, Eckman, and Hyllegard (2007 Sakarya, S., M.Eckman, and K.Hyllegard. 2007. “Market Selection for International Expansion.” International Marketing Review24 (2): 208–238. doi:10.1108/02651330710741820.[Crossref], [Web of Science ®] , [Google Scholar]. International Marketing Review, 24 (2): 208–238), and Alexander et al. (2010 Alexander, N., A. M.Doherty, J. M.Carpenter, and M.Moore. 2010. “Consumer Receptiveness to International Retail Market Entry.” International Journal of Retail & Distribution Management38 (3): 160–172. doi:10.1108/09590551011027104.[Crossref] , [Google Scholar]. International Journal of Retail & Distribution Management, 38 (3): 160–172), a cross-cultural analysis was undertaken to examine consumer receptiveness to domestic market entry by foreign apparel specialty retailers. More specifically, this study explored differences in consumers' perceptions of the influence of foreign apparel specialty retailers on social, cultural, and economic development across three countries: Spain, Turkey, and the USA. Consumer receptiveness was measured as beliefs about the social and economic influence of foreign retailers and perceptions of retailers' brand characteristics and offerings. An intercept survey of 1233 apparel shoppers was conducted in major metropolitan shopping areas in all three countries. MANOVA revealed that Spanish consumers were least concerned about urban growth associated with foreign retailers and least likely to perceive positive employment/business opportunities and socio-cultural well-being from the presence of foreign retailers. Turkish consumers held the strongest perceptions regarding the influence of foreign retailers on urban growth. Paired sample t-tests revealed that Turkish consumers, when compared with Spanish consumers, evaluated U.S. retailers' offerings more positively and were more receptive to the entry of U.S. retailers into their domestic markets. Results of regression analyses indicated that Spanish and Turkish consumers' beliefs about retail brand characteristics and the socio-cultural and economic influence of foreign retailers positively predicted consumers' receptiveness, whereas age negatively influenced receptiveness. Differences in perceptions among Spanish, Turkish, and U.S. consumers may be attributed to the varying levels of economic development among the three countries as well as to the countries' differing policies concerning foreign retailers. Findings provide a basis for the development of a measure of consumer receptiveness to international retail expansion.     

Towards a history of critical marketing studies

Abstract

In this paper, I outline a history of critical marketing studies. The argument put forward that marketing lacks any substantive critical edge is questioned. In surveying our history and finding extensive engagement with a variety of critical perspectives, I connect these with appropriate literature from non-marketing sources to flesh out an account of our critical marketing heritage. I devote considerable attention to the period 1940 to 1990, as this is the historical range of critical marketing literature that most scholars will be unfamiliar with, linking this through citation and discussion to more recently published work. In this way, this paper provides a guide to sources of literature that may have passed marketing scholars by because they violate our disciplinary demands for ‘recency’ (Baker, 2001 Baker, M.J. 2001. “Introduction”. In Marketing: Critical perspectives on business and management, Edited by: Baker, M.J. 1–25. London: Routledge.  [Google Scholar]). As I document, critical marketing studies examines a variety of areas that represent consumer culture theory's (CCT) ‘next frontier’ if we accept Arnould and Thompson's (2005 Arnould, E.J. and Thompson, C.J. 2005. Consumer culture theory (CCT): Twenty years of research. Journal of Consumer Research, 31(4): 868–882. [Crossref], [Web of Science ®] , [Google Scholar]) diagnosis. In opposition to Arnould and Thompson's assertion, CCT's new frontier, this paper contends, is a frontier that has long been of interest to critical marketing scholars whose work might usefully be re-examined.     

Ethical Decision Making: Panama–United States Differences in Consumer and Marketing Contexts

ABSTRACT

Results show that significant differences, both statistical and practical, exist between Panamanians and U.S. nationals in how they intend to behave in various consumption-related and marketing-related ethical situations. As cross-national marketing increases, the need to understand marketing and consumer ethics across countries becomes more critical. Additionally, as Robertson, Brady, and Hoffman (2001) Robertson, C. J., Brady, M. K. and Hoffman, J. J. 2001. Moral and marketing differences between the United States and Ecuador. International Journal of Organization Theory and Behavior, 4(1–2): 75–98.  [Google Scholar] point out, there has been a genuine lack of emphasis in the marketing-related ethics literature in Latin America. This study partially addresses that need by examining and contrasting the intended behaviors in ethical situations of Panamanians and Americans as consumers and marketers. The study contributes to marketing ethics knowledge on several fronts: (i) increasing understanding of ethics of Panamanians in consumer and marketing contexts, (ii) adding to the extant cross-country literature in the area of ethical decision making by consumers, and (iii) incorporating effect sizes, which is very rarely reported, to complement the significance values. Results show that significant differences exist between Panamanians and U.S. nationals in how they intend to behave in various consumption-related and marketing-related ethical situations. Managerial implications are also discussed.     

Banking Consolidation in Nigeria, 2000–2010

The Nigerian banking consolidation process is examined using a dynamic panel for the period 2000–2010. The Arellano and Bond (1991 Arellano , M. , & Bond , S. ( 1991 ). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations . The Review of Economic Studies , 58 , 277 – 297 .[Crossref], [Web of Science ®] , [Google Scholar]) dynamic general method of moment approach is adopted to estimate a cost function taking into account the possible endogeneity of the covariates. The main finding is that the Nigerian banking sector has benefited from the consolidation process, and specifically that foreign ownership, mergers and acquisitions, and bank size decrease costs. Directions for future research are also discussed.     

Get MediaSmart®: A Critical Discourse Analysis of Controversy Around Advertising to Children in the UK

In response to calls for increased regulation of advertising to children (occasioned by concerns over childhood obesity levels) a group of UK advertisers targeting young people have sought to demonstrate social responsibility by providing media literacy education resources for children aged six to eleven through the MediaSmart® initiative. This article draws on Critical Discourse Analysis (Fairclough 2001 Fairclough, Norman. 2001. “The discourse of New Labour: Critical discourse analysis”. In Discourse as data: A guide for analysts, Edited by: Wetherell, Marjorie, Taylor, Stephanie and Yates, Simeon. 229–66. London: Sage/Open University Press.  [Google Scholar]) to analyse a selection of publicly available accounts of the 2002 launch and operation of MediaSmart® in order to explore how alternative discursive representations of MediaSmart® construct children and advertising in relation to one another, and how these constructions work to further the social practices of which the discourses in question are part. The analysis concludes that the competing discourses have a stake in the problem of advertising to children remaining open‐ended, but suggests that the possibilities of its resolution lie in (a) the incorporation of children's own perspectives in controversy conducted on their behalf by adults, and (b) conceptions of media literacy which are more active and age‐inclusive than those evident in the discourses currently available.     

Commentary: Relative Presence of Business-to-Business Research in Retailing Literature

Our objective in this article is to correct the record on the contribution of the Journal of Retailing to business-to-business (B2B) research in marketing. In particular, we refute the assertion of LaPlaca and Katrichis (2009 LaPlaca, P. J. and Katrichis, J. M. 2009. Relative presence of business-to-business research in the marketing literature. Journal of Business-to-Business Marketing.,  [Google Scholar]) that the Journal of Retailing “does not regularly publish research concerning business-to-business marketing.” Our analysis of recently published (2002–2008) articles in the Journal of Retailing shows that less than 19% are devoted to B2C or C2C topics. Our comparison of the Journal of Retailing's relative emphasis on nine B2B content areas indicates parity with other marketing journals for some topics and a lesser emphasis for others. The key B2B topics of marketing strategy and channels of distribution appear relatively more frequently in the Journal of Retailing than they do in other marketing journals reviewed by LaPlaca and Katrichis (2009 LaPlaca, P. J. and Katrichis, J. M. 2009. Relative presence of business-to-business research in the marketing literature. Journal of Business-to-Business Marketing.,  [Google Scholar]). Hence, any estimate of the contribution of B2B research to marketing knowledge that dismisses the impact of the Journal of Retailing contains a downward bias.     

The Role of Attachment Style in Shaping Consumer Preferences for Products Shown in Advertisements that Depict Consensus Claims

Consensus claims are often depicted in advertisements. The present research adopts an attachment theory (Bowlby 1969 Bowlby, John (1969), Attachment and Loss, New York, NY: Basic Books. [Google Scholar]) perspective to advance new insights into the effect of consensus claims in advertisements on consumers' purchase likelihood. Results of five studies demonstrate how the effectiveness of consensus claims in ads is circumscribed to specific individuals and that interpersonal attachment style is a key moderator. Specifically, among individuals with secure attachment styles, depicting consensus claims in ads enhances consumers' intentions to purchase the advertised product, but among individuals with anxious attachment styles, consensus claims are a less effective advertising tactic as they result in lower intentions to purchase the advertised product.     

Assurance of Learning and Study Abroad: A Case Study

Most academic programs are now held accountable for measuring student‐learning outcomes. This article reports the results of an assurance of learning (AOL) project designed to measure the impact of study abroad on the development of ethical reasoning, intercultural sensitivity, and environmental attitudes. The Association to Advance Collegiate Schools of Business International (AACSB) AOL guidelines (2007 Association to Advance Collegiate Schools of Business International. 2007, November 20. AACSB assurance of learning standards: An interpretation (AACSB White Paper), Tampa, FL: AACSB International Accreditation Coordinating Committee and the AACSB International Accreditation Quality Committee. Retrieved May 16, 2009 from http://aacsb.edu/accreditation/papers/AOLPaper‐final‐11‐20‐07.pdf [Google Scholar], 2008 Association to Advance Collegiate Schools of Business International. 2008, January 31. Eligibility procedures and accreditation standards for business accreditation, 12, 15, 71, &; 74Tampa, FL: Author. Retrieved March 12, 2009 from http://aacsb.edu/accreditation/process/documents/AACSB_STANDARDS_Revised_Jan08.pdf [Google Scholar]) are used to frame the overall assessment process. Hammer and Bennett's (2002 Hammer, M. R. and Bennett, M. J. 2002. The intercultural development inventory (IDI) manual, Portland, OR: Intercultural Communication Institute.  [Google Scholar]) intercultural development inventory (IDI); Dunlap, Van Liere, Mertig, and Jones' (2000 Dunlap, R. E., Van Liere, K. D., Mertig, A. G. and Jones, R. E. 2000. Measuring endorsement of the new ecological paradigm: A revised NEP scale.. Journal of Social Issues, 3: 425–442.  [Google Scholar]) new ecological paradigm; Forsyth's (1980 Forsyth, D. R. 1980. A taxonomy of ethical ideologies.. Journal of Personality and Social Psychology, 39: 175–184. [Crossref], [Web of Science ®] , [Google Scholar]) ethics position questionnaire (EPQ); and Richins' (1987 Richins, M. L. 1987. “Media, materialism, and human happiness.”. In Advances in consumer research, Edited by: Wallendorf, M and Anderson, P. 352–56. Provo, UT: Association for Consumer Research.  [Google Scholar]) materialism scale are the primary measurement rubrics used in the study. Results support the proposition that study abroad does have a positive impact on the development of cross‐cultural sensitivity and environmental attitudes. Although study abroad appears to have no direct impact on moral reasoning, changes in ethical reasoning do appear to be related to intercultural development and environmental attitudes. The AOL project demonstrates how assurance of learning programs can be extended to include experiential learning outcomes and can serve as a guide for the furthering of the globalization of a business curriculum.