General Price-level Adjustment: Some Properties of the Edwards and Bell Method

The method of general price level adjustment proposed by Edwards and Bell differs from the traditional CPP method, insofar as it enables historical cost profit to be reconciled with real accounting income (CPP profit) by two steps within a single simple statement. Edwards and Bell's contribution is clarified in this paper, by proving rigorously the two theorems which underlie their method of applying general price level adjustment to historical cost. A numerical example is used to illustrate pure historical cost, traditional CPP, Edwards and Bell general price level adjustment, and Ijiri's dual, which is found to contain similar information to the Edwards and Bell system. This is followed by a discussion of Edwards and Bell's preferred method of price level adjustment to a replacement cost base. This method of adjustment, applied to a current cost base, underlay FAS33 as modified by FAS82 in the USA. Finally, Edwards and Bell's historical cost base is compared with a recent British proposal for a one-line adjustment to capture the effects of inflation on historical cost profit. The simplicity of the latter proposal lies in the form rather than the substance of the information presented.     

How professional service firms compete in the market: an exploratory study

Abstract

This study investigates how professional service firms (PSFs) compete in the market. Drawing on strategic marketing literature, a managerial rather than customer perspective is adopted. The study investigates the competitive positions sought by professional service providers and the specific marketing activities actually undertaken to achieve these positions. Thirty-seven depth interviews with senior management from a range of PSFs indicate that firms seek to differentiate themselves by developing long-term relationships, providing better service quality and greater value, and developing brands with strong reputations. Organisations typically seek such interrelated competitive positions simultaneously. A list of marketing activities used by the PSFs to achieve these competitive positions offers practical insights into the specific activities needed to achieve the various competitive positions sought.     

South Asia's Export Structure in a Comparative Perspective

World-wide cross-country regressions are used to examine South Asia's export structure through the lens of Heckscher‐Ohlin trade theory. By comparison with other regions, South Asia's exports are unusually concentrated on labour-intensive manufactures. This distinctive export structure is shown to be the result mainly of South Asia's distinctive combination of resources: by comparison with other regions, it has a low level of education and few natural resources, relative to its supply of labour. This basic economic fact must be recognized in the design of trade and development strategy for South Asia over the next few decades.     

Harmonious Society and Chinese CSR: Is There Really a Link?

In 2005, Chinese President Hu Jintao instituted a “Harmonious Society” policy marking a new China’s approach toward development. This generated intense excitement among observers of Corporate Social Responsibility (CSR) who perceive an overlap in objectives between CSR and Harmonious Society and believe that Harmonious Society will lead to increased CSR engagement in China. However, there is little exploration of how Harmonious Society will contribute to increasing CSR engagement. This article seeks to explore whether Harmonious Society will meet this promise. It does so by drawing up a list of actions that if taken by the government would increase the level of CSR in China and make Harmonious Society a relevant factor in the development of Chinese CSR. To do so, my article studies comparative literature on CSR development to develop a framework that divides causes of CSR in a country into environmental constraints and discretionary responses. Understanding what drives the development of CSR allows us to understand what measures the Chinese government can take to influence the level of CSR. Using this framework, my article suggests that Harmonious Society is unlikely to promote CSR in China’s growing private sector because policy measures that affect the “constraints” driving CSR are bounded by other political considerations.     

Global Heritage and Local Problems: Some Examples from Indonesia

This article examines what happens to those who live in and around monuments as a result of World Heritage designation. Using the examples of Borobudur and Prambanan in Indonesia as study sites, it is argued that the values that local people attach to heritage are often different from, although not necessarily less important than, the values ascribed by international agencies, government officials, tourism developers and others. However, their perspectives are often not adequately represented or respected by other participants in the planning and management of sites, to the detriment of both the plans and the people. The tendency to adopt top-down, rational comprehensive planning procedures has resulted in the disenfranchisement of local people, giving greater prominence to expressions of national, 'official' culture and nationalism at the expense of local culture. It has tended to freeze sites and displace human activities, effectively excluding local people from their own heritage.     

Comparative Review of Research on Environmental Impacts of Tourism in English and Chinese Literatures

China is experiencing an increasingly high level of recreation and tourism use of its environments but only limited studies of the environmental impacts of tourism have been published. This paper is based upon a collection of research papers on the environmental impacts of tourism in English and Chinese, especially research on carrying capacity and the physical impacts of tourism. The paper compares the characteristics of research in English and Chinese literatures. It shows that China lags behind the western world in this research field. Chinese researchers need to: (1) be more critical of the feasibility of carrying capacity applications; (2) introduce new technologies in their research on vegetation and soil; (3) know more about the buffering effects of different kinds of tourist trails such as boardwalks, concrete trails, cross-tie trails, cobble trails and so on; (4) try to shed light on possible positive impacts of tourism; and (5) pay more attention to the protection of environmentally sensitive areas. The paper also discusses the dilemmas of research on carrying capacity and environmental impacts.