Protectionism in EC-US trade relations

During the 1950s and early 1960s the trading interests of the US and the EC generally coincided, with the result that tariff negotiations could be held successfully. Since that time the interests of the US and the EC have diverged somewhat, and pressures for increased protection have arisen.     

Servitization and networking: large-scale survey findings on product-related services

This research paper aims at analyzing the impact of servitization on networking in manufacturing industries. Based on a cluster analysis, four types of manufacturers have been identified representing different stages of servitization. By multifactorial regressions, the impact of servitization on service networking has been investigated. Servitization is positively linked with increasing service networking activities of manufacturing companies. This finding implies that problems in realizing service networking do not prevent servitizing manufacturers from establishing inter-firm collaboration for service operations management issues. However, the results indicate that the mere existence of service networks can not guarantee success in servitizing.     

Environmental Regulation and Innovation Offsets in the Bluegrass Seed Industry

Burning bluegrass seed stubble is an important production practice that, among other benefits, increases production and stand life of this perennial crop. Despite economic forecasts that higher production costs from the 1996 state ban on seed stubble burning would reduce Washington production by up to 30%, output in the years 1998–2005 was nearly two-thirds higher than in any previous eight-year period. This study seeks to explain why that paradoxical behavior occurred. This study puts forward and systematically tests several hypotheses. The only hypothesis with any support, innovation offsets, is examined by an assessment of contemporaneous innovations and by corroborative statistical evidence.     

Dynamische Weltkonjunktur—gebremster Aufschwung in Deutschland

Trotz weiter gestiegener ?lpreise expandiert die Weltwirtschaft kr?ftig. Davon profitiert auch die deutsche Wirtschaft; sie befindet sich in einem Aufschwung, zu dem mehr und mehr die Binnennachfrage beitr?gt. Allerdings haben die Zinsen weltweit merklich angezogen, und angesichts zunehmender inflation?rer Risiken ist eine weitere Straffung der geldpolitischen Zügel sicher. Wie stark wird die wirtschaftliche Entwicklung dadurch ged?mpft? Wie verkraftet die deutsche Wirtschaft überdies die deutliche Anhebung der Mehrwertsteuer im n?chsten Jahr? Dr. Eckhardt Wohlers, 62, ist Leiter der Abteilung „Internationale Makro?konomie“ im Hamburgischen Welt-Wirtschafts-Archiv (HWWA); Dr. Günter Weinert, 64, ist dort wissenschaftlicher Mitarbeiter.     

The Importance of the Indirect Transfer Mechanism for Consumer Willingness to Pay for Fair Trade Products—Evidence from a Natural Field Experiment

A natural field experiment is conducted on the determinants of consumer’s willingness to pay for “fair trade” (FT) products. In four treatments, subjects are offered different choices in connection with a coffee purchase, such as buying regular coffee or FT coffee at a premium, regular coffee with or without a premium, or donating directly or not donating. Depending on the treatment, the premium or direct donations are either given to FT or a well-known charity. A large part of the willingness to pay a premium for FT coffee over regular coffee is shown to be not related to the specific attributes of FT coffee but rather caused by the indirect transfer mechanism that FT uses, i.e., selling products at a premium which goes to the cause of FT.     

The costs of governance in international companies

Using foreign direct investment as a governance mechanism has a cost side that goes beyond mere production and input costs. The governance costs of foreign operations are often vague and underestimated, and sometimes even ignored by companies entering a foreign market. The effects of these costs have also largely been neglected in former empirical research. This study examines the governance cost effects on foreign subsidiary performance. Using data from a survey of 160 Norwegian multinational companies the study shows that there are significant and negative relationships between bargaining, monitoring, and maladaptation costs and subsidiary performance. Conversely, costs incurred due to bonding activities are positively associated with performance. Overall, this study indicates that governance costs play a significant role in explaining the performance of foreign subsidiaries: close to 40% of the variation in performance can be attributed to such costs. Dealing with such costs is hence of utmost importance for the management of multinational companies.