Facilitating international production networks: The role of trade logistics

Networked trade in parts and components is more sensitive to the importer's logistics performance than is final goods trade. The difference between the two trade semi-elasticities is over 45%, which is quantitatively important. We also find that logistics performance is particularly important for trade among developing countries in the Asia-Pacific region, which is where the emergence of production networks has been most pronounced. Logistics performance is also more important for South–South trade than for South–North trade. Our results suggest that developing country policymakers can support the development of international production networks by improving trade logistics performance.     

亚太新双边主义兴起的原因研究——一个政治经济学的分析视角

亚太地区双边贸易协定的兴起与演进形成当代亚太区域经济合作发展的新阶段,其意义和影响日益受到国际社会的普遍关注。本文以政治经济学方法为分析工具,对亚太地区双边主义兴起的动因进行剖析和评价,指出亚太地区双边主义的形成是亚太地区各经济体在当前国际政治经济环境约束下,选择最大化自身利益的贸易政策的必然结果。中国应积极参与建立双边自由贸易区;发挥先发优势,谋求以我为主的区域经济一体化进程;协调国家战略与地区战略,平衡经济利益和政治利益。     

中国反规避立法之探索

规避和反规避是国际贸易领域中的一个新问题,这一问题对各国的贸易影响较大。而中国近几年来已成为吸引外商直接投资(FDI)最多的国家之一,在这之中又不可避免会存在一部分国外直接投资厂商将我国作为“第三国组装规避”的基地或为规避我国的反倾销税而进行投资的情景。作为一个刚加入WTO不满4年并继续受贸易政策过渡性审议机制条款约束的国家,我国在反规避立法时应该注意以下几个原则:原产地规则先导的循序渐进原则、公正合理并与WTO逐步接轨的原则,以及注重公共利益的原则。     

International strategies of service MNCs in the Asia-Pacific region

Foreign direct investment (FDI) in services has been growing rapidly in the developing countries of the Asia-Pacific region. In this study we explore the level and distribution of service FDI in the Asia-Pacific region by examining both country-level aggregate data and firm-level data. Using data in 180 large multinational corporations in 10 service industries over the 1980–1986 period, we construct a logistic regression model to examine the effects of client-following strategy, cultural difference, oligopolistic reaction, firm size, and international experience on the international expansion strategies of service MNCs in the region. Differences in the international strategies are analyzed and policy implications are discussed. © 1995 John Wiley & Sons, Inc.     

Japanese FDI5 and the Transfer of Japanese Consumer Electronics Production to Malaysia

The purpose of this paper is to assess the impact of Japanese consumer electronics companies within Malaysia. Research between January and April 1994 revealed the interdependence of a production network not only in Malaysia but within the Asia-Pacific region as a whole, and serves to illustrate the integration of trade and investment in Malaysia's industrial development. While, undoubtedly, the surge of Japanese foreign direct investment (FDI) into Malaysia's electronics industry between 1986 and 1990 has had enormous positive effects upon infrastructure development and employment creation, the results of this study question whether Japanese FDI is now contributing to the much needed structural up-grading of this industry. Central to this discussion are the underlying strategies of Japanese multinational corporations (MNCs) which have relocated in Malaysia.     

The ‘amelioration’ of child labor, ‘a modest proposal’

More than 317 million children between the age of 5 and 17 are working in the world. Child labor is a persistent phenomenon, even though its incidence has subsided with economic development. In this paper, we conduct a panel study of 101 countries from 1980 to 2004 where child labor is proxied by the labor force participation of children aged 10–14. We look at the relationships between child labor and investments in human capital, foreign direct investments, countries’ openness to trade, and credit market constraints. We depart from the contributions of cross-country studies by employing a fixed effects instrumental variable (FE-IV) panel data model by employing a fixed effects instrumental variable (FE-IV) panel data model to account for unobserved heterogeneity and endogeneity of child labor and individual country-specific effects. We find support for the conclusions of the above-mentioned studies: countries that trade more and have a higher stock of foreign direct investment have less child labor. More generally, we find that trade openness, investments in human capital, and financial development are associated with a reduction of child labor. Child labor persists but tailored policies on trade, investment, and financial reform can lessen child labor along with economic growth, improvements in health, and rising standards of living.     

Top management attention to trade shows and firm performance: A relationship marketing perspective

B2B marketers allocate significant resources to trade shows, but often struggle to make a strong business case for these activities. Responding to calls to justify such investments, this research examines the effect that top management attention to trade shows has on firm value. Based on attention theory, this study suggests that top management's focus on trade show relationship marketing efforts results in better trade show performance. This helps develop market-based assets that in turn augment firm value. Using an event study to extrapolate the contingent effect that top management attention to trade shows has on firm value, the basic hypothesis is supported. Additionally, this research tests three top management orientations that are key to performing trade show relationship marketing activities. The findings address the absence of top management from extant trade show research and provide marketers with new insights related to maximizing their trade show investments.     

进一步发展黑龙江省对俄边境贸易的对策

黑龙江省对俄边境贸易取得了一定的成就，然而在发展过程中也遇到了种种阻碍和制约。黑龙江省边境贸易的进一步发展应该是以自由贸易区为基础，大力开展加工贸易和服务贸易。在此基础上加大对外投资和劳务合作力度，并以投资带动技术合作，实现全方位的对俄经济合作。     

The internationalization of competition policy: implications for international business

In the post–Uruguay Round World Trading System and with the creation of the World Trade Organization (WTO), a new set of agendas on the governance of the world economy has emerged. Among them are the relationship between trade and social policy, trade and the environment, and trade and competition policy. These issues are new in the sense that policymakers have, until now, avoided drawing direct‐policy linkages between them. The main reason for this is that traditionally social and competition policies have been domestic policy domains that international policymakers were prevented from influencing. While environmental policy has been subject to several international negotiations, the link between trade and the environment has been relatively under‐discussed in the GATT. Moreover, there have been few international agreements that have drawn a direct link between trade and the environment.¹ The focus of this paper is the relationship between trade and competition policy. In particular, this paper seeks to address the issues related to international competition policy and the concerns and problems faced by international business in this context. ¹ An exception being the agreement on trade in endangered species (CITES). © 2000 John Wiley & Sons, Inc.     

Regionalisation and regionalism in world trade

The growing importance of regional integration, particularly in the Triad of Western Europe, North America and the Asia-Pacific region, is not always regarded as positive, but is also criticized because of the dangers involved for free world trade. What effects on world trade are to be expected? Can the new world trade order limit the possible risks?     

Interactions between tourism and financial sector development: evidence from Turkey

This article aims to examine the interactions between tourism growth and financial development in Turkey, which is a top tourist destination and has developed a well-functioning financial system over the last decade. The results confirm a long-term association between tourism development and financial development; foreign direct investments and foreign trade also impact this interaction. According to the results, tourism expansion in Turkey is mainly influenced by financial markets. The results also reveal that in Turkey, changes in tourism volume precede changes in financial volume. Thus, the major finding of this study is that tourism development and financial development in Turkey have a long-term and reinforcing interaction.     

Do overseas investments create or replace trade? New insights from a macro-sectoral study on Japan

This paper investigates the relationship between outward foreign direct investment (FDI) and exports and imports from Japan, employing an augmented standard gravity model. Several econometric techniques, including the Gamma Pseudo Maximum Likelihood estimator, are used to rectify possible problems of heteroskedasticity and zero trade flows inherent in the estimation of gravity models of trade. The major finding is that outward FDI is trade enhancing for the Japanese manufacturing industry. However, we find that whether outward FDI creates or replaces trade depends on the industry under scrutiny. Our results indicate that the complementary relationship between FDI and trade is dominant in Japanese manufacturing, especially in the food and beverages, electric machinery, primary metals, and precision machinery sectors. We find also that Japanese overseas investments substitute for imports of chemical products, and for both exports and imports of general machinery.     

Conclusion: Globalization,Work and Employment – Asia Pacific Experiences in Retrospect

In the concluding essay, the authors of this special issue provide a synthesis of the contributions presented in the volume. It is argued that globalization has become a powerful force in the business environment and has a major influence on the labour process, labour markets, the practice of management, and the management of employees in organizations. It is also asserted that both local and global companies are in various ways adjusting to the changes brought about by globalization. The essay comprehensively evaluates the significant number of management issues and variety of outcomes arising from economic globalization in the Asia-Pacific region. The implications of these issues for academic debate by managers, other practitioners, trade unions, employees and governments are critically explored.     

Australian Exports of Horticultural Crops with Special Reference to Fresh Citrus Fruits

Abstract

Exports of horticultural products, in particular fresh citrus fruits, are becoming increasingly important in terms of export earnings for Australia. However, Australian fresh citrus exports account for about 12 per cent of the total production of citrus. About 57 per cent of total exports is sold on Asian markets. The purpose of this study is to examine the problems and prospects for fresh citrus exports on world markets and, in particular, in the Asian region. The findings of the study reveal that higher freight and labour costs have made Australian citrus less competitive on world markets. Thus, producers have an incentive to sell over 80 percent of the total production of citrus on domestic markets. However, there is scope for greater market opportunities in the Asia-Pacific region for Australian fresh citrus fruits. Australia should increase the yield per tree, improve the quality of citrus fruits and identify the need for market promotion and research in order to increase the volume of citrus exports on world markets, especially in the Asia-Pacific region.     

The relationship between domestic and outward foreign direct investment: The role of industry-specific effects

Previous research has been inconclusive as regards the effect of outward foreign direct investment (FDI) on domestic investments. In this article, we show that this inconclusiveness can be explained at a disaggregated level as a function of the way industries are organized. Based on a simple theoretical framework including monitoring and trade costs, we argue that a complementary relationship can be expected to prevail in vertically integrated industries, whereas a substitutionary relationship can be expected in horizontally organized production. The empirical analysis confirms a significant difference between the two categories of industry as regards the impact of outward FDI on domestic investment. The results may thus have profound policy implications. JEL no. F12, F21, F23, G34.     

Japan 20: The West 1 Reversing the Scorecard

The trade imbalance between Japan and its Western partners may be a source of concern, but much more serious is the even far greater investment imbalance. While Japanese direct investments have poured into the North American and European markets, American and European investments in Japan are paltry: the current ratio of investment flows is running at 20 to 1, in some cases much more, in Japan's favour. As the strategic issues for Western companies in establishing a "robust presence" in Japan are fundamental and critical, the trade and investment deficits are partly caused and further exacerbated by the "knowledge-gap" between the two. Reversing the scorecard must be the most urgent imperative for Western corporations and governments, though the effort required will be very substantial indeed.     

An Evaluation of the Opportunities and Obstacles for Investments in the Maputo Development Corridor (MDC)

Abstract

The purpose of this study is to identify and investigate potential obstacles and opportunities for local and international investors in the Maputo Development Corridor (MDC).

This study focuses exclusively on the Maputo-Mpumalanga Corridor axis which could be considered as an important nucleus of the eastern region of Southern Africa. The possibility of co-operation concerning the Corridor offers both South Africa and Mozambique-which have until recently both experienced less than optimal internal trade relations-the opportunity for enhanced competitiveness.

This study therefore attempts to measure the perceptions of potential investors to identify both the obstacles and opportunities regarding the process of economic development involving the Maputo-Mpumalanga Corridor in attracting investments.     

Modelling the impact of non-tariff measures on supply chains in ASEAN

This paper explores the impact of reducing non-tariff measures (NTMs) in major ASEAN countries. New econometric estimates of the impact of different types of NTMs are used in a global supply chain model to separately model the effects on intermediate products and those sold to final consumers. We also distinguish between whether the NTM cost burden is directed at exporters or importers. This paper makes important advances in modelling the heterogeneity of NTMs, offering much richer policy analysis of the impact of NTMs on supply chains in the Asia-Pacific region than has previously been possible. We illustrate the benefits, both to the major ASEAN countries and to their trading partners, from the partial liberalisation by ASEAN countries of their most trade distorting types of NTMs. Such liberalisation increases the GDP and welfare of all countries, with the effect particularly pronounced for the major ASEAN countries themselves, especially Vietnam and the Philippines. As trade in plant products and animal products is particularly affected by NTMs, these sectors show the largest expansion of trade.     

International portfolio diversification of real assets: An inquiry

American multinational firms have grown in size and number over the past two decades. Some of this growth has been due to the search for the valuable natural resources such as oil and copper, but the search for low cost labor also has been a factor. In addition, technological advances, especially in the drug and computer industries, have stimulated the foreign investments of many firms. Another possible— and more subtl—reason for this growth in foreign business is far different from these traditional “gains from trade”; i.e., the firms could be achieving a greater stability through an international diversification of their operations. The purpose of this study is to investigate the possible benefits of internationally diversified portfolios of real assets in reducing the variance of returns.     

Internationalization of MBA Program in Asia-Pacific

Abstract

With the global village becoming a reality, efforts at the internationalization of business education have ceased to be merely fashionable. The internationalization of business education has become an increasing relevant and important goal for business schools. Most of the efforts have been focused at the internationalization of MBA programs as this is the level of business education targeted at the training of middle management personnel, for whom the creation of a global mindset and the exposure to the international realm of business would have the most immediate effect. With the Asia-Pacific becoming a major arena of international trade and business in what has been called the Pacific century, the internationalization of MBA programs in Asia is of great interest as most of the efforts at internationalization of MBA programs have taken place in developed countries, with much of the literature being about the North America and European experience. Little is known about the MBA programs offered in Asia and their internationalization. This paper provides some insights on the internationalization efforts at the Nanyang Business School (NBS), Singapore. The experience at the NBS is unique because its efforts at internationalization have coincided with government policy initiatives in encouraging Singapore businesses to extend their operations into countries of the region. The paper provides some lessons from the experiences at regionalizing the MBA programs in China, India and the transitional economies of Vietnam, Myanmar and Cambodia. Apart from the admission of international participants to its programs and the changes to its Business Study Missions, new initiatives have been introduced in the form of the MBA in International Business. The paper also explores other future initiatives for the internationalization of MBA programs in Asia-Pacific.