Enlargement and the Value of the Euro

The EMU is in the process of expanding its membership. How will the expansion affect the equilibrium or sustainable real value of the euro? What is the explanatory power of the model used to explain the equilibrium value of a synthetic euro? We then demonstrate quantitatively the dynamic effects of enlargement upon the equilibrium value of the euro under different scenarios.     

Democracy and trade: an empirical study

The theoretical discussion on globalization has suggested that there are linkages between democracy and trade, although the direction of influence is less certain. Formal empirical studies remain scarce, and have often focused on the question of whether democratic regimes influence trade policy, as opposed to the actual relationship between democracy and trade. This paper seeks to answer the question, “Do democracies trade more?” by applying the gravity equation to a large dataset of bilateral trade data for the period 1948–1999, while taking into account the role of democracy. It finds that democracy is positively related to trade flows, but only after controlling for trade pair heterogeneity. In addition, it makes the case for studies of this nature to draw a distinction between trade flows in the pre- and post-1990s period of rapid democratization as well as between developed and developing countries.     

Global networks of clusters of innovation: Accelerating the innovation process

This article presents a framework for understanding new patterns of innovation and commercialization that are most easily observed in Clusters of Innovation (COI) and in the global connections established among them. We define COI as environments that favor the creation and development of high potential entrepreneurial ventures. COI are characterized by heightened mobility of resources (principally people, capital, and information—including intellectual property); increased velocity of business development; and a culture of mobility that leads to an affinity for collaboration, development of durable relationships, and the formation of Networks of Clusters of Innovation (NCOI). These networks are distinct sets of relationships. When the connections progress to the point of mutual dependence and business integration among participating enterprises, such covalent bonds form tightly interrelated business communities, or Super-Clusters of Innovation (Super-COI). In this article, we analyze the characteristics of COI and the nature of the relationships that arise between them to form NCOI and Super-COI. Further, we present an integrated model to better understand the global innovation system.     

Tourism and crime in the Caribbean

This study reviews the general literature on tourism and crime and the recent history of violent and property crime in several Caribbean destinations. It highlights the failure of most previous research to discriminate crimes against tourists vs. residents. Annual crime data for Barbados for 1989–93 are analyzed and reveal that overall guest victimization rates are higher than host rates. Residents are significantly more likely to be victimized by violent crime while tourists are significantly more likely to experience property crime and robbery. Monthly data on guest victimization for 1990–93 show similar patterns. The paper concludes with a number of measures to enhance tourist safety.     

The Commodification of Race in Singapore: The Customer Service Implications of the Other-Race Effect on Tourism and Retailing

This paper examines the phenomenon known as the other-race effect, which is the ability to recognize the faces of those of one race, easier than the faces of those from another race. Typically, the race that is easier to recognize is the individual's own race, and most previous research has focused on this type of comparison. This study, though, analyzes the ability of Chinese Singaporeans to recognize the faces of people of color versus White faces in a customer service context, and compares those results with the ability of White subjects in the United States to recognize the same faces. This approach is particularly applicable to the Asia Pacific region. Tourism accounts for a significant part of the regional economies, and marketers are becoming more sensitive to the changing needs of the multicultural marketplace where inter-racial interactions between customers and service providers in retailing and tourism are on the rise. Results of the research indicate evidence of the other-race effect. Asians who were more exposed to people of color than to Whites, recognized Black faces better than White faces. The results are interpreted based on the theoretical premise that people are better at recognizing faces of races for which there is a higher level of interaction, exposure, and familiarity.     

Proposal for two model undergraduate curricula in entrepreneurship

This paper takes three important preliminary steps towards the development of undergraduate curricula in entrepreneurship. First, it provides one of the first analyses comparing the entrepreneurship education standards proposed by the Consortium for Entrepreneurship Education and the European Commission’s Education and Training in Entrepreneurship initiative. Next, it presents an analysis of results of a workshop of entrepreneurship educators regarding development of an undergraduate entrepreneurship standard for business schools. With these two elements in place, the paper makes recommendations for model undergraduate entrepreneurship curricula for majors and concentrations, and concludes with a discussion of the issues in developing and implementing model curricula in a manner consistent with emerging standards in US business schools.     

THE RISE OF FUTURE FLOW ASSET SECURITIZATIONS

Since their debut in 1987, future flow asset securitizations (FFS) have found growing acceptance in markets worldwide. FFS are defined simply as the forward sale of hard currency receivables to be generated in the future through normal business operations by an exporter of goods or services. The most widely used receivables include export receivables for corporations, and credit card vouchers, electronic transfers, and paper-based remittances for financial institutions. While companies in emerging markets have led the way in embracing FFS, the instrument's versatility has also made it valuable in industrialized countries where both companies and governments have begun to employ these structures for a variety of purposes.
This article surveys the use of future flow asset securitizations in both emerging and highly developed markets, outlines its basic structure and applications, and evaluates the benefits of the structure to each party to the transaction. Among the most significant advantages in emerging markets is the financial discipline that countries and companies alike must practice in order to qualify for a future flow asset securitization. The authors present three cases where FFS have been employed successfully by companies in Brazil, Mexico, and Turkey.
The risk management features of FFS make this instrument particularly valuable in times of economic stress. In fact, no investment-grade FFS transactions have defaulted, despite volatile economic conditions in many countries where FFS have been issued. The authors predict that FFS will continue to find broad applications in a wide variety of markets.