An Exploratory Framework for Analysing International Retail Learning

It is argued that international retail research has overlooked an essential component of the retail internationalization process, notably learning. This paper proposes an exploratory framework that enables the application of learning theory to the study of international retailing. The paper provides a meaningful starting point for developing an overarching framework which would represent one sort of re-conceptualization of the retail internationalization process, and arguably a new perspective for reinterpreting, re-evaluating and refining the existing literature on international retailing. Alongside this exploratory framework, we present a series of research propositions that might serve as an agenda for research into international retail learning. The paper concludes with a summary of the key themes and ways in which the area of international retail learning may be investigated.     

Enlargement and the European Geography of the Information Technology Sector

The information technology sector in Europe, comprising the production of computer hardware and software, is disproportionately located on the continent's western periphery. The vast bulk of computers sold in Europe in the 1990s were assembled either in Ireland or Scotland, while Ireland also accounted for over 40 per cent of all packaged software and 60 per cent of all business software sold in Europe. As the sector in both these locations is largely foreign owned, the question arises as to whether EU enlargement might impact on the geography of the sector by diverting information technology FDI from the western to the new eastern periphery. This issue is explored in the present paper by analysis of five individual sub‐segments: computer assembly and electronic components, R&D, mass‐market packaged software and the remainder of the software sector. The paper deems it likely that computer assembly operations will continue the shift seen in recent years from Ireland and Scotland to Central and Eastern Europe. The production of electronic components such as microchips represents a growing share of activity in most EU locations as well as in the CEE countries. Analysis suggests that this pattern of geographically‐dispersed growth will resume once the consequences of the collapse of the high‐tech bubble are played out. The distribution of R&D activity across Europe and globally is also considered unlikely to be much affected by enlargement. As for software, as long as localisation activities remain important, Ireland – the EU location in which most of this activity is carried out – seems set to be able to compete strongly, given the attractiveness of its English‐language environment and other attributes to the young continental Europeans upon which this activity relies. Most software services remain largely non‐tradable however. This sector will grow in the accession states as computer penetration rates converge on the EU average, but without displacing activity from the incumbent EU member states. For firms already competing in the tradable niche software segment, on the other hand, enlargement cannot but be beneficial because of its impact on the size of the market into which they sell.     

Section 1. Description of the Riskworld project process

This paper describes the Riskworld project design and process in further detail and provides an indication of how the ideas, key themes and questions evolved at each phase.     

Re-examining the exchange rate pass-through into import prices using non-linear estimation techniques: Threshold cointegration

We document a significant threshold cointegrating relationship among effective nominal exchange rates and import prices. Using quarterly data for five industries of 16 OECD countries, we find that the degree of pass-through improves dramatically from the 50% average documented in the literature once threshold effects are recognized. The results of our threshold cointegration model show that import prices respond faster and by a larger extent to nominal exchange rate shocks than is the case for more conventional models. These findings give empirical support to the hypothesis that an equilibrium rate of pass-through exists (e.g. [Bacchetta, P., & Van Wincoop, E. (2005). A Theory of the currency denomination of international trade, Journal of International Economics 67, 295–319; Devereux, M., Engel, C., & Storgaard, P. (2004). Endogenous exchange rate pass-through when nominal prices are set in advance, Journal of International Economics 63(2), 263–291]).     

A hierarchical utility model for the dynamic acquisition of heterogeneous items

This paper develops a model for situations in marketing and elsewhere in which an individual decision maker acquires multiattributed items that belong to several classes over time. The model captures the dynamic acquisition of heterogeneous items. Measurement and parameter estimation methods are described and illustrated with a small set of experiment data involving the acquisition of durable goods by households. Future research steps are also outlined.     

Functional marketing plan development in department store retailing

Retailers are now implementing the types of formal marketing planning programs that have long characterized consumer goods firms. The functional marketing plans that are developed tend to be a year or less in duration. The primary responsibility for developing the plans resides with the general merchandise manager. The planning efforts of the retailing executive, in spite of their short term nature, do reflect an awareness of the importance of understanding the strengths and weaknesses of competitors and of the need to spell out issues involving profit planning, sales promotion planning, merchandise addition/deletion decisions, and issues involving inventory/physical distribution. A variety of marketing plans are developed. Separate plans are developed by merchandise lines in many organizations. The authors wish to express their appreciation to The Conference Board for permission to use the questionnaire, with modifications, underlying research for The Marketing Plan, Report No. 801, The Conference Board, 1981, as the basis for formulating the questionnaire used in this research     

Siren Voices on 'Reflation'

The growth in government spending and its resistance to reform can be explained through the activities of interest groups. Barry Craven (right), of the Newcastle-upon-Tyne Polytechnic, offers local experince to reinforce the argument of Rosalind Levaćić pp.4–8.     

The role of low expectations in health and education investment and hazardous consumption

Abstract .  Young people with little 'social or health capital' may be more likely to take up hazardous consumption and shun investments in human capital, raising their likelihood of a 'rags to rags' sequence. First, diminishing marginal utility could raise the marginal benefit of hazardous consumption and the cost of investment. But poor youths may also have lower expectations of future success, independent of the choices they make. Lower expectations of success could reduce the future cost of hazardous consumption and benefit of investment. We test the effect of expectations on decisions to smoke, drink hazardously, exercise, and complete high school, using a longitudinal study of youth in New Zealand. We find that 15-year-olds' expectations of success predict the subsequent onset of smoking, lack of exercise, and failure to complete high school, but not hazardous drinking. While some of the influence of expectations can be explained by low social and health capital, IQ, and other factors, expectations retain a direct effect on smoking and exercise once these other factors are controlled for.