Developing countries and the future of the automobile industry

This paper reassesses the controversial view which has assumed that, at some point in the future, the global automobile industry, having reached maturity, would naturally migrate to the leading developing countries where the markets are growing more rapidly and wages are substantially lower. The authors argue that the threshold facing a developing country seeking to establish a domestic automobile industry has risen because of two recent developments: the rise of Japan as a major automobile producer; and a new wave of technological and organizational innovation. This involves use of state-of-the-art microelectronics and flexible manufacturing system, as well as complete restructing of component supply resulting in considerable unit cost and lead-time advantages.The authors look at what these trends mean for both the OECD and the developing countries. They outline the conventional view in more detail and then present an alternative analysis of the evolution of the industry. New policy options for the developing countries are spotlighted.     

Developing a Learning Community Approach to Business Ethics Education

In this paper we discuss a project, still in progress, that moves away from a traditional lecture based educational pedagogy. We present a team taught approach to ethics teaching that embraces a progressive philosophy of education and is focused on the development of a discussion based learning community. We describe our primary pedagogical tools of case discussion and the development of student expert role assignments as a locus, and how they relate to the learning community, course content and course objectives. Finally, we provide our preliminary review of outcomes and emerging issues.     

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Ohne Zusammenfassung     

The Target Zone Model, Non-Linearity and Mean Reversion: is the Honeymoon Really Over?

We estimate a target zone model for three ERM exchange rates for 1983–6 and 1987–91 by the method of simulated moments, taking account of the continuous time specification by using daily data with the interruptions of holidays and weekends. Specification tests are unable to reject the model. The estimates imply, however, an essentially linear relationship between the exchange rate and the fundamentals, with a very limited 'honeymoon effect'. Using Monte Carlo simulations, calibrated on the estimates, we find that standard tests for mean reversion of the exchange rate would largely reject the target zone model when, in fact, it held.     

The wages of motherhood: better or worse?

Data from two British cohort studies show that women with childrenhave lower wages than childless women. We develop an innovativedecomposition of this 'family gap'. The crude pay gap betweenmothers and childless women in their thirties was similar in1978 and 1991, but low pay in part-time work became more importantin explaining this gap, and human capital less so. We find that,among full-time employees, women who broke their employmentat childbirth were subsequently paid less than childless women.In contrast, mothers who maintained employment continuity wereas well paid as childless women, but neither were as well remuneratedas men.     

The nature of local area social exclusion in England and the role of the labour market

The creation of the Social Exclusion Unit by the present governmentin 1997 is just one example of the increased desire by bothacademics and policy-makers to understand more about the factorsthat lead to individuals and communities becoming excluded frommainstream society. Of the many aspects of social exclusionwhich have featured in recent debate, this article focuses ontwo. The first is to describe the nature and the extent of socialexclusion in the areas in which it is concentrated in the UnitedKingdom. The second is to examine the role that labour-marketfactors play in creating, reducing, or sustaining geographicalconcentrations of social exclusion. The article draws upon theresults of social surveys conducted in deprived areas and discussesthe arguments for tackling local concentrations of social exclusionthrough area-based initiatives.     

International Pricing with Costly Consumer Arbitrage

Consumer arbitrage affects international pricing in several ways. If all consumers face the same arbitrage costs, a monopolist's profit increases with arbitrage costs, and world welfare declines with them (if output does not rise). If arbitrage costs differ across consumers, a monopolist may sell in a second country even if there is no local demand—it can use the second country to discriminate across consumers in the first country. Again, world welfare typically falls with arbitrage costs. When there is also local demand in the second country, world welfare may be increasing in arbitrage costs, even if output falls.