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1 – 10 of over 4000In a supply-constrained region like Asia, promoting exports has always been a challenge particularly at a time when Asia’s trade has been severely affected by lack of external…
Abstract
In a supply-constrained region like Asia, promoting exports has always been a challenge particularly at a time when Asia’s trade has been severely affected by lack of external demand. This paper argues that price barriers have taken a new shape during the global financial crisis period which may generate differential impacts on trade flows as we proceed toward recovery. The size and shape of price barriers would be higher if NTBs, applied by the countries during the crisis period, were counted. One of the conclusions of this paper is that ‘price’ barrier is still more important than ‘non-price’ barrier in enhancing Asia’s trade and integration. The higher the price barrier between countries in a pair, the less they trade. In other words, a 10 percent increase in the ad-valorem price (transport and tariff) lowered trade by 6 percent. Tariff and transport costs, each considered separately, also influence the trade flow in the same direction, to more or less the same extent. There are indications of huge domestic infrastructure bottlenecks in countries in Asia. Based on direct and indirect evidence related to trade barriers, this paper concludes that complementary trade policies focusing on price and non-price barriers have immense importance in enhancing international trade and integration in the post-crisis period.
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Focuses on the international marketing of services and the need forservice marketers to be aware ofbarriers to international marketingunique to the service sector, as well as of…
Abstract
Focuses on the international marketing of services and the need for service marketers to be aware ofbarriers to international marketing unique to the service sector, as well as of management strategies for overcoming such barriers. Describes fundamental barriers to the successful international marketing of services. Includes a discussion of the significance of GATT. Explores managerial implications of tariff and non‐tariff barriers for international services marketing.
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Ian Wilkinson and Gordon Wills
Many firms are now undertaking their final analysis of the effects on their businesses of Britain's entry into the E.E.C. New opportunities in Europe and new threats at home are…
Abstract
Many firms are now undertaking their final analysis of the effects on their businesses of Britain's entry into the E.E.C. New opportunities in Europe and new threats at home are being anticipated and planned for. One obvious fact that is being focussed upon by many is the phased elimination over the next five years of tariff barriers between Britain and the six present member countries. This leads firms to examine their pricing policies for Europe, if they are already operating there, and ponder such questions as whether the tariff saving is to be passed on to the consumer in the form of a price reduction, or retained by the firm. Alternatively, if firms are not already operating in Europe then the tariff reductions are seen as an opportunity for them to consider marketing there. We attempt here to explore the effects of Britain's entry on the overall marketing strategies of British firms in Europe and to put the tariff reduction question into its broad commercial perspective.
The level and structure of protection from tariff and non‐tariff measures confronted by developing country exports of oilseeds, vegetable oils, and related products are examined…
Abstract
The level and structure of protection from tariff and non‐tariff measures confronted by developing country exports of oilseeds, vegetable oils, and related products are examined to assess the gains available to these countries through further rounds of trade liberalisation. Although developing country exporters of these products can expect only limited benefits from a removal of tariffs by major developed market economy country (DMEC) importers, considerable gains could be realised by removing the relatively higher tariff rates imposed by the developing countries, and by removing the many non‐tariff measures which developing countries and DMECs use as well.
Richardson Kojo Edeme, Ebikabowei Biedomo Aduku, Nwokoye Ebele Stella and Chigozie Nelson Nkalu
Taking global economic integration into consideration, this study investigates the effects of the imposition of the tariff. For every tariff increase, a percentage of the trade…
Abstract
Taking global economic integration into consideration, this study investigates the effects of the imposition of the tariff. For every tariff increase, a percentage of the trade volume is reduced. This means, there is a tradeoff between globalization and restricted trade. This chapter presents empirical evidence from the European Union and the Sub-Saharan Africa region using annual times series for the period, 1980–2019. Result indicates that with coefficient of 4.31 percent, the tradeoff in European Union is higher than Sub-Saharan Africa region with coefficient of 2.66 percent. Implied is that developing countries are more likely to suffer more from the negative effect of globalization due to trade restrictions than the developed countries of the world. This is an indication that whether in developed or developing countries, a tradeoff exists between globalization and restricted trade. Hence, the imposition of tariffs and counter-tariffs is capable of shutting down globalization.
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Gabriela Ortiz Valverde and Maria C. Latorre
The purpose of this paper is as follows: first, it aims to explain the overall economic implications of the trans-pacific partnership (TPP). Second, it aims to provide an in-depth…
Abstract
Purpose
The purpose of this paper is as follows: first, it aims to explain the overall economic implications of the trans-pacific partnership (TPP). Second, it aims to provide an in-depth analysis of the TPP’s quantitative impact on an upper-middle economy such as Mexico, as well as on the USA.
Design/methodology/approach
The analysis is performed using a computable general equilibrium (CGE) model.
Findings
The results suggest that in the short run, both Mexico and the USA would slightly benefit from the TPP. Tariff reductions would lead to less bilateral trade between Mexico and the USA and the stronger integration of both countries with the rest of the TPP members. The opposite is true after a decrease in non-tariff barriers (NTBs). Overall, in terms of the impact on Mexico, trade integration with the rest of the TPP members prevails. This suggests that a TPP without the USA could still be beneficial.
Originality/value
Previous studies on the TPP have mainly focused on its impact for the USA, which is also analysed in the present study. The effects of the TPP are estimated for a broad set of micro and macroeconomic variables, paying particular attention to the reductions of NTBs.
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Rules of origin (ROOs) are often cited as major trade barriers even after tariff barriers are removed with the formation of preferential trade agreement (PTA) as shown in a survey…
Abstract
Purpose
Rules of origin (ROOs) are often cited as major trade barriers even after tariff barriers are removed with the formation of preferential trade agreement (PTA) as shown in a survey result that a large number South Korean firms in the textile industry give up utilizing tariff-free exports to the USA after the bilateral Free Trade Agreement (FTA) due to ROOs. The purpose of this paper is to examine the impact of ROOs on the equilibrium FTA regime and the welfare effects.
Design/methodology/approach
The authors determine the impact of ROOs on the equilibrium FTA regime based on an oligopolistic model where there are asymmetry in production technologies of intermediate goods and the capacity of outsourcing intermediate goods.
Findings
The authors demonstrate that ROOs are used as a protective trade policy against the FTA member country with an outsourcing option for technologically dominant intermediate goods.
Practical implications
The non-cooperative features of ROOs found in this paper necessitates the introduction of an international coordination mechanism to avoid the prisoners’ dilemma-type implementation of ROOs.
Originality/value
This paper provides a theoretical frame to analyze the protective effects of ROOs under PTAs.
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Madhabendra Sinha, Manohar Kumar Rai, Manish Kumar Rai and Abhijit Dutta
The chapter empirically investigates the effects of tariff imposition on manufacturing trade comparatively in the north and south economies across the globe during the last three…
Abstract
The chapter empirically investigates the effects of tariff imposition on manufacturing trade comparatively in the north and south economies across the globe during the last three decades. Traditionally north and south represent the developed and developing world, respectively. Along with the volume and balance of trade, the study accounts for both export and import separately to observe their dynamisms under the tariff regime and makes comparisons between developing and developed groups of countries. Using World Development Indicators (2019) and World Integrated Trade Solutions (2019) databases on 77 developing and 48 developed nations for 1991–2018, the robust difference panel generalized method of moments estimates imply that impositions of domestic tariffs significantly reduce manufacturing trade in both groups of countries; however, developing countries experience this effect in a greater extent.
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Mohammad Masudur Rahman and Chanwahn Kim
The purpose of this paper is to explore the trade and investment potential under the ambit of sub‐regional cooperation comprising the four contiguous countries of Bangladesh…
Abstract
Purpose
The purpose of this paper is to explore the trade and investment potential under the ambit of sub‐regional cooperation comprising the four contiguous countries of Bangladesh, China, India and Myanmar (BCIM).
Design/methodology/approach
The study addressed both intra‐regional and intra‐industrial trade, applying a dynamic gravity model of bilateral trade flows by product group of BEC's 1‐digit product classification, to set a panel data for the period of 1992‐2009.
Findings
The analysis reveals that higher trade transaction costs and tariff between each pair of countries reduce the trade flow. One of the major findings of the paper is that a large part of BCIM's trade has remained unrealized and the trade transaction cost is one of the major trading barriers prohibiting the growth of BCIM intra‐regional trade. The paper concludes that liberalization of non‐policy barriers will spur BCIM's trade, particularly in a time of ongoing global economic and financial crisis.
Practical implications
The study reinforces that improvement in infrastructure that leads to less trade transportation costs should be a necessary step in order to realize BCIM's trade potential. The paper concludes that liberalization of non‐policy barriers will spur BCIM's trade and economic cooperation, particularly in time of ongoing global economic and financial crisis.
Originality/value
This paper is the first‐ever attempt to estimate the trade potential of BCIM countries using dynamic gravity model.
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Hamid Moradlou, Hendrik Reefke, Heather Skipworth and Samuel Roscoe
This study investigates the impact of geopolitical disruptions on the manufacturing supply chain (SC) location decision of managers in UK multinational firms. The context of study…
Abstract
Purpose
This study investigates the impact of geopolitical disruptions on the manufacturing supply chain (SC) location decision of managers in UK multinational firms. The context of study is the UK manufacturing sector and its response to the UK's decision to leave the European Union (EU), or Brexit.
Design/methodology/approach
The study adopts an abductive, theory elaboration approach and expands on Dunning's eclectic paradigm of international production. A Delphi study over four iterative rounds is conducted to gather and assess insights into manufacturing SC location issues related to Brexit. The panel consisted of 30 experts and managers from a range of key industries, consultancies, governmental organisations, and academia. The Delphi findings are triangulated using a focus group with 38 participants.
Findings
The findings indicate that the majority of companies planned or have relocated production facilities from the UK to the EU, and distribution centres (DCs) from the EU to the UK. This was because of market-seeking advantages (being close to major centres of demand, ease of access to local and international markets) and efficiency-seeking advantages (costs related to expected delays at ports, tariff and non-tariff barriers). Ownership and internalisation advantages, also suggested by the eclectic paradigm, did not play a role in the location decision.
Originality/value
The study elaborates on the OLI framework by showing that policy-related uncertainty is a primary influencing factor in the manufacturing location decision, outweighing the importance of uncertainty as an influencer of governance mode choices. The authors find that during geopolitical disruptions managers make location decisions in tight time-frames with incomplete and imperfect information, in situations of high perceived uncertainty. The study elaborates on the eclectic paradigm by explaining how managerial cognition and bounded rationality influence the manufacturing location decision-making process.
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