The practical side of international trade

We've all heard stories about U.S. exporters who shipped goods, then were not paid—or importers who bought goods from abroad, then found them not up to quality or received them too late. These problems are often due to too much concentration on the glamorous side of international trade and too little attention to the practical.     

Justifying wrongful employee behavior: The role of personality in organizational sabotage

The role that personality plays in the justification of organizational sabotage behavior was examined. In a two phase study, 120 business students were first surveyed to create a list of 51 methods of sabotage. In the second phase, 274 other business students rated justifiability of the 51 methods and completed Machiavellian and hostility scales. A factor analysis of the justification ratings yielded four factors: (1) methods of sabotaging company profits and production, (2) informational sabotage, (3) violent and illegal methods, and (4) traditional labor methods of sabotage. A 2 (high versus low Machiavellianism) ×2 (high versus low hostility) ANOVA upon factor scores for justifiability revealed significant main effects for hostility and significant interactive effects on Factors 1 and 2. Results were discussed in terms of differences in management and blue collar methods of sabotage and in terms of a self-presentational approach to justification of sabotage. Robert A. Giacalone is currently Assistant Professor of Management Systems at the E. Claiborne Robins School of Business, University of Richmond. Dr. Giacalone has published a variety of articles in the areas of organizational impression management, organizational sabotage and business ethics. His book, Impression Management in the Organization, co-edited with Paul Rosenfeld, is due out in 1989.Stephen B. Knouse is currently Associate Professor of Management at the University of Southwestern Louisiana. Dr. Knouse has published numerous articles on the letter of recommendation and impression management.     

Types and Amounts of Information Used by Efficient Consumers

This paper describes a research methodology which assesses the efficiency of consumer decision-making based on the types and amounts of informational cues used. A simple operational method is used to classify consumers into three levels of consumer efficiency based on how well they perform in assessing the optimal choice. The information chosen by perfectly efficient consumers, or those scoring at the maximum level of efficiency, is examined for indicators of optimal information seeking and decision-making techniques.     

Effects of differential information on the after-market valuation of initial public offerings

This paper examines the after-market for initial public offerings (IPOs), particularly the security valuation effects of structural differences in available information. There is a diversity of information among issuing firms at the time of their offering and particularly under certain market conditions. Because this diversity decreases with time and after-market trading, the IPO market provides an ideal setting for testing errors due to differential information levels in early after-market valuation of IPO firms. We find evidence that during “hot” market conditions and for firms characterized by low levels of available information, the market values of issuing firms are more likely to be overestimated in the immediate after-market. We also find positive overestimation of market values to be more likely for larger IPOs and for those marketed by the less prestigious underwriters.     

The cluster approach in the innovation development strategy of foreign countries

Foreign experience in carrying out cluster policy and the scales of distribution and the variety of cluster structure types abroad are considered and generalized. The main attention is given to innovation directivity as the key factor of increasing regional and national economic competitiveness. The important role of the state in formation of effective cluster policy providing substantial improvement in the business climate and stimulating the priority development of high-tech fields is placed in strong relief. The next issue of the journal will contain an article about the situation in Russia (Ed.).     

The law of one price: a test based on prices for selected inputs in New Zealand agriculture

The law of one price (LOOP) is an essential foundation of both the pure theory of trade and monetary theory. Strictly speaking, the law relates to prices of individual commodities. However, empirical tests of LOOP have often relied on aggregated data. In this paper, a model is derived and estimated using price data for 15 selected inputs in New Zealand agriculture. The results offer no support for the LOOP in the short run, and the results for the long run are mixed. It may be inappropriate, therefore, to assume that the LOOP holds generally in modelling exercises, particularly when models are used for policy purposes.     

ADOPTION OF MODERN VARIETIES AND FERTILIZER USE ON RICE IN THE EASTERN TARAI OF NEPAL

Factors influencing the adoption of MV (modern variety) rices and fertilizer in the Tarai of southeastern Nepal were examined through multivariate probit (varietal adoption) and tobit (fertilizer adoption and use rates) regression models. This study reaffirms the finding that the adoption of modern rice technology is highest where irrigation exists. Tenure status and access to credit were significantly related to varietal adoption but family and farm size and the operator's education were not. Similar variables, in addition to fertilizer price, influenced the probability of fertilizer adoption and use rates on rice.