Tourism and cross cultural communication

Adaptive strategies that facilitate economic and socio-cultural interaction in a West Mexican resort community, Puerto Vallarta, are examined over time. The special role played by bilingual culture brokers and the presence of both seasonal and resident foreigners contribute to rapid culture change, the expansion of tourism, and strenghening ethnic identity. This paper focuses on the spatial, temporal, linguistic, and cultural factors that mediate between the various types of guests and the host country.     

Small business economics

The paper presents an overview of small-business economics. Small businesses are shown to comprise a substantial and expanding segment of the U.S. economy. The role of small businesses in the economy is considered from the standpoint of various economic theories of the size distribution of firms. Firm-size related empirical regularities are reviewed and their implications for economic theory is discussed. Several small-business policy issues are discussed, including the role of small businesses in labor, macroeconomic, and regulatory policies, along with a review of research on small-business economics that might help guide these policies.We wish to thank Zoltan J. Acs and an anonymous reviewer for helpful comments.     

Strategically Surviving Bankruptcy during a Global Financial Crisis: The Importance of Understanding Chapter 15

Chapter 15 of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act allows foreign courts more power in cases that include foreign multinational firms. U.S. businesses unexpectedly have to file a claim in another country with bankruptcy rules that are sometimes drastically different from those in U.S. courts. This paper outlines the different bankruptcy laws in selected countries and exemplifies how some countries place U.S. creditors at a disadvantage relative to employees and stockholders. This knowledge should be incorporated into management's strategic contingency plans in the case of supplier or business customer default. During periods of global financial instability such as the 2008 financial crisis, an understanding of Chapter 15 is essential.     

“Human Quality Treatment”: Five Organizational Levels

Quality is commonly applied to products and processes, but we can also define human quality in dealing with people. This requires first establishing what treatment is appropriate to the human condition. Through an inquiry into the characteristics that define the human being and what ethical requirements constitute a good treatment, we define “Human Quality Treatment” (HQT) as dealing with persons in a way appropriate to the human condition, which entails acting with respect for their human dignity and rights, caring for their problems and legitimate interests, and fostering their personal development. With this in mind, we can distinguish between five different levels or degrees of HQT in organizations which can be characterized by the following terms: (1) maltreatment (blatant injustice through abuse of power or mistreatment), (2) indifference (disrespectful treatment through lack of recognition of people’s personhood and concern), (3) justice (respect for persons and their rights), (4) care (concern for people’s legitimate interests and support for them in resolving their problems), and (5) development (favoring human flourishing, mutual esteem, and friendship-based reciprocity).     

Partial credit guarantees and firm performance: evidence from Colombia

This paper studies the effect of government-backed partial credit guarantees on firms’ performance in Colombia. These guarantees are automatically granted by the National Guarantee Fund (NGF) to firms without enough collateral to lift their credit constraints. We put together a panel of firms covering the period 1997–2007 that allows us to control for observed and unobserved firm characteristics potentially affecting both the selection of firms into the program and firms’ performance. We find that firms that gain access to credit backed by the NGF were able to grow in terms of both output and employment. However, we do not find any effect on productivity, wages, or investment.     

Harmonization relating to auditor independence: the Eighth Directive,the UK and Germany

The European Union Eighth Directive on the approval of auditors covers auditor independence only to a very limited extent. The provisions in the five articles on this subject are far less detailed than they were in the drafts of the directive, so that almost all specific regulation is left to the Member States. An examination of the development of the articles dealing with independence and integrity shows how the need to compromise, in order to reach an agreement, frustrated the intentions of the harmonizers. This paper traces the development of the independence rules in the Eighth Directive from the avant projet through the drafts to the final directive. It assesses the extent to which pre-Eighth Directive regulation in the UK and Germany may have affected the directive and then examines the implementation of the directive in the two countries. It concludes that national culture and accounting traditions prevented harmonization of independence rules through the Eighth Directive.     

Imports,monopoly power,profits and exchange rates

This study uses pooled data on U.S. manufacturing industries and on U.S. imports to analyze the level of monopoly power and the restraining influence of the import penetration ratio at the industry level. In general, industries with higher levels of imports have lower levels of monopoly power. In addition, imports have a greater impact on industries with more monopoly power (i.e., higher concentration), even though the level of imports may be lower. Finally, the impact of imports on monopoly power appears to be increasing over time indicating that U.S. manufacturing has become significantly more competitive over the 1961 to 1984 period. (JEL F14, L12)     

Creating a bridge between university and industry in small European countries: the role of the Industrial Liaison Office

The frequent and intermittent need for new scientific knowledge has resulted in an increasing focus on links between industry and academic institutions. This has been particularly pronounced in the flows of knowledge between the two partners, which may lead to considerable diffusion of scientific and technical knowledge, particularly into the small firm sector. This development could be of particular benefit to smaller peripheral economies, which have demonstrated low levels of indigenous industrial technological development. As a result, universities could become increasingly important for local economic development in smaller countries on the periphery of Europe. However, a greater understanding is required of the pro-active role that the university itself can play in developing strong linkages with industry, particularly through mechanisms such as the Industrial Liaison Office (ILO). In particular, there needs to be an examination of the strategies and policies that are undertaken to increase the process of technology transfer from academia into local indigenous business within smaller countries. This paper will therefore examine the role that universities play in the regional economic development in two contrasting small countries of Europe, namely Sweden and Ireland. Drawing on interviews with key individuals in the processes of technology transfer between academia and industry (including ILOs), as well as secondary data, it will examine the general role and function of the industrial liaison office and how this has changed. It will also discuss the involvement of the university in different types of industrial links, the main opportunities and barriers to the development of links between university and industry, the benefits to the university from industrial links, and the perception of industry’s assessment of the relationship with universities. The research will provide valuable insight into the role of universities in developing innovation and entrepreneurship within the smaller and peripheral countries of Europe and will determine whether these universities are undertaking a pro-active role in encouraging the growth of innovative indigenous industry. This may have significant policy implications, especially with regard to the development of specific regional programmes to encourage academic-based entrepreneurship.     

Africa's Money in Africa

Workers' remittance and compensation of employees received in Sub‐Sahara Africa (SSA) increased from USD 1.398 billion in 1980 to USD 4.834 billion in 2000 and soared to USD 21.101 billion in 2010. The impact of remittance on recipient economy requires further empirical investigation as there has not been consensus on whether remittance induces “financial prodigality” or investment in Africa. Differing from extant studies, this study employed rule of law, regulatory quality and government effectiveness as indicators of institutional quality. This is with a view to exploring how institutional quality and financial depth interact with remittance to influence investment in 44 African countries (1995‐2010). The major finding from the study, inter alia, is that institutional quality and financial depth play complimentary role in influencing remittance for investment in Africa. This study concludes that the impact of Africa's money in Africa will be enhanced in the presence of reliable institutional quality and viable financial sector. Thus, the side effect of “financial prodigality” that might be associated with remittance can be ameliorated.