Adjustment Problems in Developing Countries and the U.S.-Central America-Dominican Republic Free Trade Agreement

Abstract

In this study, MERCOSUR's past exports to the EU under the protectionist environment of the period between 1988 and 1996 are examined and an attempt is made to determine MERCOSUR's exports' growth potential in a liberalized EU market. A sectoral study is considered indispensable since tariff and non-tariff trade barriers vary strongly among sectors. The influence of the macroeconomic environment on MERCOSUR's exports is examined in a dynamic panel analysis. A simulation study based on a quite comprehensive evaluation of EU trade barriers is performed for the Argentinean case to evaluate the impact of EU trade liberalization.     

The Internetalisation of information,knowledge, and interaction components of the firm's internationalisation process

Abstract

Transcending traditional national borders, the Internet is an evolving technology that has opened up many new international market opportunities. However, ambiguity remains, with limited research and understanding of how the Internet influences the firm's internationalisation-process components. As a consequence, there has been a call for further investigation of the phenomenon. Thus the purpose of this study was to investigate the Internet's impact on internationalisation-process components, specifically, information availability, information usage, and interactive communication, with international market growth. Analysis was undertaken using structural equation modelling. Findings highlight the positive mediating impact of the Internet on information availability and usage, with the international market growth of the firm.     

The moderating effect of brand orientation on inter-firm market orientation and performance

Abstract

While prior research has shown that market and brand orientation are key contributors to successful business performance, research to date has not fully explored how inter firm collaboration for these two key orientations can enhance business performance. The purpose of the paper is to investigate the relationship between inter-firm market and performance; to test for the moderating role of brand orientation in that relationship. A total of 169 completed pairs of surveys were collected of small and medium enterprises operating internationally in a variety of industries in Switzerland. The results show that inter-firm market and brand orientation are two antecedents of marketing and financial performance. The impact of inter-firm market on marketing and financial performance is significant when the brand orientation is favorable. This study extends previous research by examining the moderating role of brand orientation on inter firm market orientation, which is important, especially for firms wanting to increase their brand reputation by entering into partnerships with other firms. Further research is indicated, to identify the key moderators of the driving force of inter-firm market in relation to business performance and the reason why maintaining a strong brand presence is important in the international marketplace.     

Exchange rates and US direct investment into Latin America

Abstract

In this paper, we analyze separately the determinants of maritime transport and road transport costs for Spanish exports to Poland and Turkey (markets for which maritime and road transport are competing modes) and investigate the different effects of these costs on international trade. First, we investigate the extent to which maritime and road transport costs depend on different factors such as unit values, distances, transport conditions, service structures, and service quality. Second, we analyze the relative importance of road and maritime transport costs in comparison with distance measures as determinants of trade flows. The main results of this investigation indicate that real distance is not a good proxy for transportation costs and identify the central variables influencing road and maritime transportation costs: for both modes, transport conditions are strong determinants, whereas efficiency and service quality are more important for maritime transport costs, and geographical distance is more important for road transport. Road and maritime transport costs are central explanatory factors of exports and they seem to deter trade to a greater extent than road or maritime transit time when endogeneity is considered.     

Market Orientation in Vertical Business Networks

Abstract

This research addresses three questions: (1) Why are some business network firms more market orientated than others? (2) What effect does the environmental uncertainty have on the network performance impact of market orientation activities performed by a network firm? (3) Does network embeddedness influence the effectiveness of a firm's market orientation activities? The findings from a study on a vertical grocery network suggest that the performance impact of market orientation activities depends on the network identity of the network firm. Network embeddedness of a network firm is found to enhance this performance link. Finally, uncertain market environments favor down-stream allocation of market orientation activities in our sample.     

The Political Economy of Trade Protection: The Determinants and Welfare Impact of the 2002 US Emergency Steel Safeguard Measures

This paper analyses the political economy of trade protection in the context of the factors determining the US Emergency Safeguard Measures for steel imposed in March 2002. The paper identifies several factors in addition to the official justification of problems of global over‐capacity and the penetration of imports in the US market, namely the continued failure to restructure poorly performing firms, failure of previous attempts at protection and the influence of the domestic steel lobby and short‐term political gains to the Bush administration of protectionist action. The paper also reviews several ex ante and ex post empirical studies of the impact of the steel Safeguards on the steel industry and downstream steel‐consuming activities. All of these studies find that the costs of the Safeguard Measures outweighed their benefits in terms of aggregate GDP and employment as well as having an important redistributive impact. The paper provides a brief summary of the subsequent WTO steel case and the final resolution of the dispute. The evidence suggests that the steel Safeguards owed more to political expediency than justification for protection under the WTO rules.ost empirical studies of the impact of the steel Safeguards on the steel industry and downstream steel‐consuming activities. All of these studies find that the costs of the Safeguard Measures outweighed their benefits in terms of aggregate GDP and employment as well as having an important redistributive impact. The paper provides a brief summary of the subsequent WTO steel case and the final resolution of the dispute. The evidence suggests that the steel Safeguards owed more to political expediency than justification for protection under the WTO rules.     

Marketing Metrics Use in a Transition Economy: The Case of Vietnam

ABSTRACT

This article explores the use of marketing metrics by a sample of Vietnamese firms, providing an example of the use of marketing metrics in a “transition” economy as it grows and becomes more market and marketing driven. The analysis reports usage frequency and then develops a set of “correlation chains” linking firm characteristics, metric use, and various indicators of performance. Vietnamese managers generally report that several types of metrics are used. Ownership structure and industry also impact which metrics are utilized. An initial assessment of chains relating metric use to firm performance indicates that the impact is complex and indirect.     

Distance Education

ABSTRACT

This article examines management of accountancy education in Zambia and Zimbabwe, two countries in Sub-Saharan Africa. Both programs are collaborative efforts to manage the link between the accounting profession, governments of emerging economies and in-country postgraduate training facilities. Both programs are designed to promote the study of accounting at a level recognized by the international accountancy profession.

The programs are being developed in the context of World Bank research, which confirms linkage between economic growth and an appropriately trained accounting profession, and recognizes the need for economic growth in Sub-Saharan Africa.

Six principal program characteristics are examined: the challenge facing the accountancy profession in Sub-Saharan Africa; funding sources; details of the programs; delivery of the programs; program costs, and graduation outcomes. This article reports on the struggle faced by the accounting profession in emerging economies to make the managers of the global accountancy profession, donor agencies, and multinational commercial enterprises aware of this aspect of the developing SSA market.     

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.     

Applications of the behavioural homogeneity evaluation framework: The predictive ability of consumer involvement for international food market segmentation

Abstract

This article proposes a framework of alternative international marketing strategies, based on the evaluation of intra- and inter-cultural behavioural homogeneity for market segmentation. The framework developed in this study provides a generic structure to behavioural homogeneity, proposing consumer involvement as a construct with unique predictive ability for international marketing strategy decisions. A model-based segmentation process, using structural equation models, is implemented to illustrate the application of the framework.     

The Relative Impact of Market Orientation and Entrepreneurship on Export Performance: Do We Really Know Enough?

ABSTRACT

The impact of international corporate entrepreneurship and market orientation on firm performance is well acknowledged in the literature, but their relative influence on the performance of exporting firms remains inconclusive. This study seeks to help clarify the influence of these organizational resources by introducing a third complementary resource, namely commitment to learning. The results, based on data obtained from a survey of exporters in China, show that commitment to learning mediates the relationship between market orientation and entrepreneurship. It was also found that market orientation could be a double-edged sword for exporters in that it can enhance export satisfaction through entrepreneurship, but it can also have negative impact on profit.     

Unraveling the IJV Rationale in Emerging Markets: The Case of Multinational Enterprises in the Russian Construction Industry

ABSTRACT

This article investigates the role of international joint venture strategy of five multinational enterprises in the Russian construction market. Joint ventures play a crucial and specific role for these firms’ strategy in Russia: They serve both as an entry mode and a postentry strategy; facilitate business and guide foreign investors; increase efficiency for further strategy; and help international construction firms overcome the environmental deficiencies. Findings of the article bolster the theory by stressing the facilitating effect of joint venture upon challenges and problems that Western firms meet in emerging market in contrast with more developed economies.     

Grey Power: An Empirical Investigation of the Impact of Parallel Imports on Market Prices

The persistence of price discrimination across international markets with falling costs of unofficial importing is both paradox and policy concern. E-commerce facilitates a “grey” market in parallel imports, particularly for high-value goods such as electronics. This paper explores the impact of unofficial imports on price using a panel of product markets mediated via an Internet shopbot. It finds the presence of an import model lowers prices across the market. However, unlike the refurbished model it is not simply an inferior substitute. The import price discount increases over the model life cycle, suggesting that model-specific preferences fall as each model ages.

Industrial Development from Tax Incentives: With Special Application to Ceará

SUMMARY

This work seeks to show that a fiscal incentives policy should be based on an analysis of both costs and benefits. When such an analysis is well-prepared, fiscal incentives can be a strong policy for industrial development. In order to illustrate the logic of this reasoning, the case of recent industrial development in the Brazilian state of Ceará is analyzed.

RESUMEN. Este estudio busca demostrar que una política de incentivos fiscales debe basarse en el análisis de costos y beneficios. Cuando el análisis se traza correctamente, los incentivos fiscales pueden convertirse en una poderosa política de desarrollo industrial. Para ilustrar la lógica de este razonamiento, se analiza el caso del reciente desarrollo industrial ocurrido en el estado brasileño de Ceará.

RESUMO. Este trabalho procura mostrar que uma política de incentivos fiscais deve ser baseada na análise de custos e benefícios. Quando bem desenhada esta análise, os incentivos fiscais podem ser uma forte política de desenvolvimento industrial. Para ilustrar a lógica deste raciocínio é analisado o caso do recente desenvolvimento industrial no estado brasileiro do Ceará.     

Naming Products in China: Local or Foreign Branding

ABSTRACT

This study examines the effect of program trades on the price changes in the Korean stock index futures and spot markets employing intraday return and trading data. Program trades in the Korean stock market create an instant imbalance in market liquidity. However, their impact is very short-lived and limited in an economic sense. Moreover, there is little tendency for market returns to over-react to program trades. An increase in program trades results in higher spot market volatility but does not cause monotonically increasing futures market volatility. Overall, program trades do not destabilize the stock market in Korea despite some positive association between program trades and volatility.     

What the OECD-WTO TiVA Data Tell Us about Comparative Advantage and International Trade in General

ABSTRACT

This article tests the influence of distance on French international trade during the first globalization by using Germany as a mirror. Unlike Germany, the impact of distance on French exports to distant markets contradicts the literature in a context of fall in transaction costs. France did not take advantage of the globalization that was occurring at the end of the period insofar as it did not intensify its exports to emerging countries that were enjoying rapid economic growth. To understand the difficulties encountered by France in exporting, we discuss the role of commercial policy and of price competitiveness.     

Paraguay and Mercosur: The Lesser of Two Evils?

ABSTRACT

This article examines Paraguay's experience with Mercosur in terms of its impact on economic growth, trade, investment, industrial competitiveness, and income distribution. Of particular interest is Mercosur's impact on the flourishing border trade taking place under the “regimen de turismo,” a special tax regime for consumer goods, especially electronics. The author concludes that while Mercosur has not brought all the benefits expected from membership in the customs union, being excluded from Mercosur might have been worse for the Paraguayan economy.     

Costs of unintentional injuries among children in an urban slum community in Kampala city,Uganda

Abstract

Unintentional injuries cause deaths, disabilities, productivity and financial losses and disproportionately affect children in low-income settings yet their cost remains under studied. This study determined the household out-of-pocket expenditure and missed school attendance due to unintentional childhood injuries in a Ugandan slum. We used a cross-sectional household survey design. Data were collected on occurrence and associated costs of unintentional injuries during a one-year period from July 2014 to June 2015. A total of 706 (44.7%) children who had suffered from injuries were reported in the one year period. More male children (N?=?415, 58.7%) suffered injuries than females (N?=?291, 41.2%). The average out-of-pocket expenditure on treating an injury was US $24.1 [standard deviation (SD)?=?±$62.8] and mean school days lost were 25 days (SD?=?±51.8). Road traffic injuries (RTIs) resulted in higher costs [mean difference was US $51.1 (95% CI: $11.4–$90.8)] compared to injuries that, for example, occurred at school. In a Ugandan slum community, unintentional childhood injuries resulted in high out-of-pocket expenditures and missed school attendance. The costs varied widely depending on external causes of the injury. These findings highlight the need to invest in population level injury prevention interventions to reduce injury costs by households.     

Product recall,brand equity,and future choice

Abstract

The number of major product-recall incidents involving established brands have increased markedly over the last few years. Although the direct costs have been evaluated in these cases (typically in the millions), the indirect costs to brand equity and subsequent loss of market share are harder to evaluate. This paper applies a simulated multistage choice-based experiment to assess the impact of hypothetical product-recall experiences on brand-equity measures and, importantly, future brand choice. Contrary to some evidence, we find that product-recall experience has greater negative impacts for established strong brands than weaker non-established brands. Additionally, attributes of product recall such as the seriousness of the recall problem and speed of recall announcement impact on pre- and post-recall differences in consumer evaluations of brand equity. Differences in brand-equity evaluations for the established strong brand significantly affect post-recall choice.     

Perception of Sex Appeal in Print Advertising by Young Female Anglo-Saxon and Second Generation Asian-Islamic British

Abstract

The aim of this research is to provide empirical data to either support or challenge the view that subculture has an impact on how sex appeal in advertising is perceived. The study looks at young females of two specific British subcultural groups, Anglo-Saxon and Asian-Islamic British. It reveals that there are differences in the perception of sex appeal, since the Asian-Islamic British have a rather more negative attitude towards this particular appeal, while the Anglo-Saxon have a much more positive attitude towards it.