THE EFFECTS OF VERTICAL MARKETS ON TRADE POLICY REFORM

Typically, analysis of trade liberalization ignores the impactthat intermediate stages in the production and distributionsystem may have on the pass-through of changes in tariffs tofinal goods' prices. Using a model of a multi-stage system,this paper shows that both the number of vertical stages andthe degree of imperfect competition at any specific stage canaffect the degree of tariff pass-through. Simulation of themodel with respect to recent changes in the European Union bananaregime suggests that ignoring vertical market structure is likelyto over-estimate the benefits to consumers of trade liberalization.     

What's it worth? A general manager's guide to valuation

Behind every major resource-allocation decision a company makes lies some calculation of what that move is worth. So it is not surprising that valuation is the financial analytical skill general managers want to learn more than any other. Managers whose formal training is more than a few years old, however, are likely to have learned approaches that are becoming obsolete. What do generalists need in an updated valuation tool kit? In the 1970s, discounted-cash-flow analysis (DCF) emerged as best practice for valuing corporate assets. And one version of DCF-using the weighted-average cost of capital (WACC)-became the standard. Over the years, WACC has been used by most companies as a one-size-fits-all valuation tool. Today the WACC standard is insufficient. Improvements in computers and new theoretical insights have given rise to tools that outperform WACC in the three basic types of valuation problems managers face. Timothy Luehrman presents an overview of the three tools, explaining how they work and when to use them. For valuing operations, the DCF methodology of adjusted present value allows managers to break a problem into pieces that make managerial sense. For valuing opportunities, option pricing captures the contingent nature of investments in areas such as R&D and marketing. And for valuing ownership claims, the tool of equity cash flows helps managers value their company's stake in a joint venture, a strategic alliance, or an investment that uses project financing.     

The Genesis Enterprise: creating peak-to-peak performance

Peak performance is often the beginning of failure. The process of continuously creating peak-to-peak performance defines the Genesis Enterprise. There will always be more problems than there are solutions. We need to install a process that anticipates and solves problems before they are problems and to continuously transform our organization into a championship organization that is nevertheless the underdog.     

Business Ethics in The Philippines

The plurality of languages and ethnicities, the geographic fragmentation, the predominant Roman Catholic religion, together with the still relatively short experience in nationhood account for a very peculiar understanding of "business ethics" in the Philippines. The rapid growth and liberalization of the economy, coupled with the inequitable distribution of wealth, the destruction of the environment and corruption are the main ethical concerns. Businesspersons and the academe endeavor to find creative solutions for these unique challenges.