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This study aims to use analogical reasoning to draw a conceptual link between liabilities in International Business (IB) and export barriers.
Abstract
Purpose
This study aims to use analogical reasoning to draw a conceptual link between liabilities in International Business (IB) and export barriers.
Design/methodology/approach
Following a review of 130 articles on export barriers, the study develops and applies a “liabilities” metonymy to connect the source construct (liabilities in the IB) and target subject (export barriers).
Findings
Liabilities in the IB map to export barriers, and the concepts of liability of foreignness, liability of outsidership, liability of newness and liability of smallness can substitute export barriers.
Practical implications
Adoption of metonymy creates new opportunities for enhancing theory development while offering alternative perspectives regarding coping mechanisms for overcoming export barriers.
Originality/value
This, to the author’s best knowledge, is the first study in the IB to theorize based on metonymy.
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Rita M. Walczuch and Lizette Steeghs
The 1995 EU Directive on data protection legislation (DPL) ensures free flow of data within the EU. However, the transfer to countries without adequate DPL is generally forbidden…
Abstract
The 1995 EU Directive on data protection legislation (DPL) ensures free flow of data within the EU. However, the transfer to countries without adequate DPL is generally forbidden. The effect of this Directive on the business of MNCs is still unknown but a few authors foresee major problems for MNCs doing business in Europe. On the eve of the implementation of the new EU data protection directive this preliminary study investigated some of the effects the new DPL Directive might have on MNCs doing business in Europe as seen by representatives of European and US MNCs. The study found that especially those companies transferring customer data across national boundaries are most affected by strict DPL. However, the effects mentioned by interviewees were, in contrast with popular literature on this topic, not exclusively negative. Several positive effects of strict privacy guidelines for MNCs could also be identified.
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Simei Wen, Jing Zheng and Xiaoli Liu
The trade cost is a significant factor which restricts the trade potential between two nations. This paper aims to make a measurement of agricultural bilateral trade costs of…
Abstract
Purpose
The trade cost is a significant factor which restricts the trade potential between two nations. This paper aims to make a measurement of agricultural bilateral trade costs of China.
Design/methodology/approach
Based on Novy model, this paper makes a measurement of agricultural bilateral trade costs before and after China joining the WTO (1995‐2007).
Findings
This paper finds that China's agricultural trade costs with its five major trade partners have not got a pronounced downward trend during 1995‐2007. In ascending order, these are: Malaysia, the USA, Japan, Brazil and Argentina in 2007. Otherwise, there is an obvious corresponding relationship between the trade potential and costs of agricultural products, which is that high costs lead to inadequate trade. With a simple regression, distance and free trade agreement are found to be main factors influencing agricultural trade costs.
Originality/value
Based on the revised gravity model, this paper especially calculates the agricultural bilateral trade costs before and after China joining the WTO, which expands the understanding of trade costs in an industrial perspective. It can prove the agricultural market opening extent, and also help us to learn more about how China participates in the division of the world farm produce market.
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Foreign direct investment (FDI) is a strategic decision for achieving competitive advantage by multinational enterprises. The purpose of this paper is to explore the role of…
Abstract
Purpose
Foreign direct investment (FDI) is a strategic decision for achieving competitive advantage by multinational enterprises. The purpose of this paper is to explore the role of institutional determinants of FDI using data from 24 emerging markets including China, India, Indonesia, Turkey, Thailand, Malaysia and Pakistan.
Design/methodology/approach
In order to identify factors that attract FDI in emerging markets, this study has used data from sources such as the World Bank, Index of Economic Freedom and UNCTAD.
Findings
The findings of this research indicate that infrastructure quality, trade cost measured by tariff and non-tariff barriers, institutional quality measured by effective rule of law, political stability, regulatory quality and control on corruption are significant determinants of FDI in emerging markets.
Originality/value
This is the first study to analyze the sectoral institutional determinants of Inward FDI in the important emerging economies, to the best of authors’ knowledge.
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John Saldanha and Gregory DeAngelo
This research uses theoretical perspectives from public choice and public policy to establish and test theory of the combined effects of institutional environments and…
Abstract
Purpose
This research uses theoretical perspectives from public choice and public policy to establish and test theory of the combined effects of institutional environments and bureaucratic corruption on international delivery performance.
Design/methodology/approach
A panel archival dataset is assembled from multiple public databases to test hypotheses based on public policy, public choice and supply chain theory using a fixed effects model.
Findings
The authors' theory demonstrates that institutional environments as constituted by the level of regulatory trade barriers and legal system effectiveness combined with bureaucratic corruption can influence the timeliness of international deliveries.
Research limitations/implications
This research extends public choice and public policy with the insight that regulatory institutions' bark is not bad without the bite of effective legal institutions. The research uses archival data collected in mass surveys with data aggregated at the country level that can be unduly affected by selection effects, perceptual data, and unobserved underlying mechanisms.
Practical implications
The results of this research can be used to inform supply chain managers working in trade compliance to be aware of the costs and effects on logistics performance that result from encountering different institutional environments and the concomitant corruption.
Originality/value
This is the first investigation of the complex and significant interaction effects of institutional environments and corruption on international delivery performance.
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The purpose of this paper is to simulate the effects of the Regional Comprehensive Economic Partnership (RCEP) on trade and income, with a particular interest in the effect on…
Abstract
Purpose
The purpose of this paper is to simulate the effects of the Regional Comprehensive Economic Partnership (RCEP) on trade and income, with a particular interest in the effect on China and Korea.
Design/methodology/approach
This paper adopts a Computable General Equilibrium (CGE) model developed by Li et al. (2017) to simulate the effect of RCEP. The CGE model is grounded in the firm heterogeneity theory. Within this framework, the feature of dynamic movements of firms allows the CGE model to capture the extensive margin of trade increase. Aside from that, the CGE model separates foreign direct investment (FDI) from domestic investment, which helps to explain the effect of the removal of FDI barriers.
Findings
Results show that RCEP will increase trade of China by 1.5 percent. The income of China will increase by 2.5 percent. The trade increase of Korea will be $8bn, and its income will increase by 0.6 percent. In terms of welfare, China will gain $214bn and Korea will gain $23~35bn, taking 2~3 percent of Korea’s GDP. Also, the reduction of behind-the-border barriers presents very significant effects.
Originality/value
The main contribution of this paper is to quantitatively assess the potential effects of RCEP on trade and income. The positive findings would propel RCEP parties, especially China and Korea, to reach an agreement as soon as possible.
Exports help developing countries to expand their production, promote industrialization and accelerate their economic growth. They played an important part in the economic…
Abstract
Exports help developing countries to expand their production, promote industrialization and accelerate their economic growth. They played an important part in the economic transformation of Southeast Asian countries. The Generalized System of Preferences (GSP) is one of the ways in which developing countries can increase their exports to the markets of developed nations. The GSP, a unilateral, non‐reciprocal program agreed under the United Nations provides preferential duty entry to numerous products imported into developed countries by eligible developing countries. The objective of this study is to examine the role of GSP in stimulating exports of developing countries. It also provides a comparative appraisal of the GSP schemes of the United States and Japan. The paper also makes certain recommendations to make GSP schemes more efficient and applicable to particular situations.
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The purpose of this paper is to analyze the potential of partnerships of the European Union (EU) with two of the so‐called BRIC countries, i.e. Brazil and India.
Abstract
Purpose
The purpose of this paper is to analyze the potential of partnerships of the European Union (EU) with two of the so‐called BRIC countries, i.e. Brazil and India.
Design/methodology/approach
The scope of analysis will be the EU vis‐à‐vis Brazil and India, using two types of trade liberalization: bilateralism/regionalism and multilateralism.
Findings
It is found that Brazil and India want to become more important players; yet, they seem to lean against “old” powers (mainly the USA), and tend to focus on south‐south regionalism.
Research limitations/implications
The present study provides a starting‐point for further research on the relationship between the European Union and the new leading powers.
Originality/value
This paper offers practical information to anyone interested in the role of Brazil and India in their relations with the EU, bilaterally/regionally and multilaterally.
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It is argued that the evolution of trade between the People’s Republic of China (PRC) and the European Union (EU) falls into three phases: limited contact; both sides seeking…
Abstract
It is argued that the evolution of trade between the People’s Republic of China (PRC) and the European Union (EU) falls into three phases: limited contact; both sides seeking rapid growth and becoming mutually dependent; and high mutual trade levels with political considerations re‐emerging, China being kept at arm’s length by GATT/WTO and the EU restraining trade through increasing quotas, tariffs and anti‐dumping actions. Nevertheless, high levels of Intra Industry Trade (IIT) demonstrate mutual dependence. Cultural and political differences, as well as incompatible statistical records, prevent trade reaching its full potential at present.
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A large portion of labor and trade in most countries is devoted to the service sector, and thus service sector impacts are crucial to a full understanding of the effects of WTO…
Abstract
A large portion of labor and trade in most countries is devoted to the service sector, and thus service sector impacts are crucial to a full understanding of the effects of WTO membership. The effect of WTO membership on trade volume has been subject to debate in the past, but critically, these studies have failed to examine service sector trade specifically. Conventional wisdom would seem to suggest that WTO membership should have boosted services trade, particularly after the implementation of the General Agreement on Trade in Services (GATS) in 1995. However, the relationship has yet to be rigorously tested. Here, I use data comprising 178 countries across a span ranging from 1995 until 2015 to examine the impact that WTO membership, and specifically WTO accession, has had on service sector trade levels relative to goods trade levels after the adoption of GATS. Statistical tests yield weak evidence for any significant relationship between WTO membership and service sector trade, with some possible exceptions for states that underwent many rounds of negotiations. This exception is explored further through a comparison of the WTO accessions of China and Vietnam. However, even in these extreme cases, it is difficult to find clear evidence of service sector liberalization. Overall, the findings imply that, in almost all cases, WTO rules and accessions have underemphasized service sector trade in favor of agricultural and goods trade, generating lopsided impacts to trade efficiency.
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