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This paper analysises China’s optimal scale of foreign reserve during 1985‐2004 with single ratio and synthesis ratio. The single ratio analysis shows that China’s foreign reserve to import ratio has exceeded 40 per cent after foreign exchange rate united in 1994. The foreign reserve to money supply ratio is high as 23.8 per cent, and will exceed 25 per cent of international alertness in 2005. The foreign reserve to debt ratio largely exceeded 30 per cent of international alertness. The current account balance to GDP ratio and the current account balance plus FDI to GDP ratio is out of international alertness in most years. The synthesis ratio analysis show that China’s real foreign exchange reserve exceeded foreign exchange demand of debt, FDI and import during 1996‐2004, and the exceeded ratio is close to 90 per cent in 2004. This paper also discusses influence of capital flight after 1995 and international hot money after 2002 to China’s optimal scale of foreign exchange.

The flexibility of managers to respond to risk and uncertainty inherent in business decisions is clearly of value. This value has historically been recognized in an ad hoc manner in the absence of a methodology for more rigorous assessment of value. The application of real option methodology represents a more objective mechanism that allows managers to hedge against adverse effects and exploit upside potential. Of particular interest to managers in the merger and acquisition (M&A) process is the value of such flexibility related to the particular terms of a transaction. Typically, stock for stock transactions take more time to complete as compared to cash given the time lapse between announcement and completion. Over this period, if stock prices are volatile, stock for stock exchanges may result in adverse selection through the dilution of shareholder wealth of an acquiring firm or a target firm.

The paper develops a real option collar model that may be employed by managers to measure the market price risk involved to their shareholders in offering or accepting stock. We further discuss accounting issues related to this contingency pricing effect. Using an acquisition example from U.S. banking industry we illustrate how the collar arrangement may be used to hedge market price risk through flexibility to renegotiate the deal by exercising managerial options.

Allyn Young′s lectures, as recorded by the young Nicholas Kaldor, survey the historical roots of the subject from Aristotle through to the modern neo‐classical writers. The focus throughout is on the conditions making for economic progress, with stress on the institutional developments that extend and are extended by the size of the market. Organisational changes that promote the division of labour and specialisation within and between firms and industries, and which promote competition and mobility, are seen as the vital factors in growth. In the absence of new markets, inventions as such play only a minor role. The economic system is an inter‐related whole, or a living “organon”. It is from this perspective that micro‐economic relations are analysed, and this helps expose certain fallacies of composition associated with the marginal productivity theory of production and distribution. Factors are paid not because they are productive but because they are scarce. Likewise he shows why Marshallian supply and demand schedules, based on the “one thing at a time” approach, cannot adequately describe the dynamic growth properties of the system. Supply and demand cannot be simply integrated to arrive at a picture of the whole economy. These notes are complemented by eleven articles in the Encyclopaedia Britannica which were published shortly after Young′s sudden death in 1929.

This essay explores certain aspects of single product industry basic systems of the type Sraffa develops in Part I of Production of Commodities by Means of Commodities. It focusses on triangular trade as the simplest expression of the more general n-commodity case. Two elements of the framework are explored: (i) the relation of exchange between all commodities, conceived as the configuration of exchange which is applicable to the subsistence and surplus models, and (ii) the value/price expressions of labour time, applicable to the surplus model only, which posits the productivity of, remuneration to and extraction from living labour added to the system. This analysis complements and extends the Marxian reading of Sraffa’s notions of surplus and deficit industries first explored in Carter (2014b). The methodology of ‘given quantities’ in expositing the relations developed is adopted in this essay as it corresponds to the same method employed by Sraffa. This allows readers to easily move from the present essay to Sraffa’s book and importantly his archival notes which are now for all interested parties available as colour digital images on the Wren Library website.

The purpose of this paper is to evaluate the soybean agricultural production system and the subsequent industrialization processes in order to assess the environmental sustainability of the soybean chain in Brazil and, also, to evaluate the amount emergy exchanged in the soybean trade.

The emergy accounting methodology was used as analysis tool in this paper.

The main findings were, first, the distribution of emergy flows inputs according to soybean chain stages, being 94 percent used by the agricultural production system, 1 percent used by transport to industry, 4 percent used by crushing, and 1 percent for oil refining. Second, emergy indicators showed negative sustainability trends trough the soybean chain stages. Third, the emergy exchange ratio demonstrated that the soybean farmers are delivering around five times more emergy with the soybean sold that the emergy they are receiving with the money paid for it and, thereby, depleting its local natural resources.

The agricultural production stage uses the highest amount of resources. Therefore, any improvement in the management of this stage will result in improvement of the whole soybean chain. In this context, the adoption of more sustainable soybean agricultural production systems becomes fundamental for the long‐term environmental sustainability of the soybean chain. Organic production models and agro‐forestry technologies should be used toward more sustainable soybean chain because it can help to decrease the dependence of the soybean production systems on external non renewable resources.

Emergy accounting methodology provides a very comprehensive tool to complement and complete energy, economic and social information about the soybean chain in Brazil. The emergy exchange ratio provides information to access and enrich the discussion about soybean fair trade.

A type of system boundary, e.g. a membrane in biology, a castle in sociology, a typhoon eye in meteorology and a skin and fur on an animal body, is defined as a shell (jieke in Chinese), if the system boundary plays roles of both defending the system and exchanging between the system and its environment. Investigates the system boundary. Derives the entropy balance equation of the shell and deduces the criterion of the exchange ratio entropy which carries material out through the shell of the system from the second law of thermodynamics of the system. Also derives a dynamic equation of the shell from control theory and gives an application of the equation to immigration control by the customs.

This chapter aims to shed light on the hidden benefits and losses of US-China trade within the framework of unequal exchange theory. After presenting the evolutions of the trade balance between China and the United States, we propose two methods for measuring the unequal exchange between them: one considers the labor content directly incorporated into the exchange; the other focuses on the international values with input-output tables. This allows to present a synthesis of sectoral analyses. Our results show a significant unequal exchange in US-China trade over 1995–2014, the United States being actually the main beneficiary of this trade. Both methods exhibit the inequality in exchange tending to decrease over time; China's disadvantage has been gradually reducing from the 2000s. We finally suggest that the relative decline in the hegemonic status of the United States in this bilateral unequal relationship could help explain its decision to launch its trade war with China.

Ostensibly the Carverian argument is based on the following premise, which is treated as an axiom:Human beings like other living creatures seem to be driven by a force that they neither understand nor care to resist, to keep on living, to consume food and transform it into human energy, and to increase their numbers, thus, in every way, enlarging the stream of human energy. In short, they act unconsciously, driven by their own nature, precisely as they would act consciously if they were convinced by unanswerable logic that the most valuable thing in the world was human energy or human life, and the most profitable thing in the world was to transform the largest possible sum of solar energy into human energy. (p. 12)

Propensity to dollarize in Latin America in the demand-side of some economies of the region has a strong political risk component which, in the past, was mainly carried out by inflationary pressures. Coping with risk meant holding FCDs. A recursive multilevel model is developed and empirically tested with Colombia’s data to stress a country-specific tendency to dollarize due to political risk. The chapter’s conclusions suggest that consideration of issues, policies and implications inherent to the decision to dollarize cannot ignore that, the solution to any government-enforced dilemma in the supply-side of these economies, is also politically motivated. Results of a survey are also provided.