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Article
Publication date: 1 August 1999

Alan Zimmerman

Barriers, especially non‐tariff barriers (NTBs), have been shown to have an important impact upon international trade in services. Foreign direct investment and market entry…

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Abstract

Barriers, especially non‐tariff barriers (NTBs), have been shown to have an important impact upon international trade in services. Foreign direct investment and market entry strategy theory do not adequately address the importance of NTBs in the decision‐making process. Previous studies indicate that service firms need to establish local presence to be successful in a foreign market. Where firms are unable to enter a market because it is blocked by trade barriers, some researchers suggest managers engage in specific entry strategies or strategic actions to overcome barriers. This study, based on in‐depth interviews with insurance executives, shows that trade barriers are one of several factors managers evaluate when deciding whether to enter a market. However, barriers can become a critical factor if they create prohibitive costs or difficulties. Based on the findings, this study proposes a new model of market entry decision making which hypothesizes that barriers can become a go/no‐go decision factor.

Details

Journal of Business & Industrial Marketing, vol. 14 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 15 November 2011

Sumeet Gupta, Mark Goh, Robert Desouza and Miti Garg

Free trade agreements have been employed, either unilaterally or as a bloc, as an instrument to overcome the inefficiencies in trade brought about by the prevailing barriers and…

4050

Abstract

Purpose

Free trade agreements have been employed, either unilaterally or as a bloc, as an instrument to overcome the inefficiencies in trade brought about by the prevailing barriers and regulatory measures. During the tenth summit the leaders of Association of Southeast Asian Nations (ASEAN) agreed to integrate their priority sectors with a vision to developing an ASEAN economic community whereby there would be a free flow of goods, services, investment and a freer flow of capital, equitable economic development, and reduced poverty and socio‐economic disparities. This market would have no price discrimination for commodities and against foreign goods, services, capital and labor. The purpose of this paper is to assess the current state of the cross‐border trade in logistics services among ASEAN. The extent of the ease of cross‐border trade is measured in terms of trade friendliness. The trade friendliness is a measure of the openness of ASEAN towards conducting free cross‐border trade.

Design/methodology/approach

This study uses a series of semi‐structured interviews with 35 logistics and related firms operating in ASEAN.

Findings

It was found that the unwieldy customs procedures and inspections, lack of coordination, and arbitrary rulings are some barriers to freer cross‐border trade within ASEAN.

Practical implications

In this paper, the authors have identified several barriers that influence logistics services across ASEAN. ASEAN must address these barriers before any further attempt of freer trade can be made.

Originality/value

Studies have been conducted for the USA and Europe but not for the Asia‐Pacific. The Asia‐Pacific is a growing region for global trade and therefore assessing the trade openness or friendliness in the logistics sector is useful for taking further policy initiatives for developing an ASEAN economic community.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 23 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

Open Access
Article
Publication date: 30 June 2010

Prabir De

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…

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.

Details

Journal of International Logistics and Trade, vol. 8 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Book part
Publication date: 24 September 2010

Joseph F. Francois and Will Martin

Most current modeling approaches identify very small gains from trade reform. In this chapter, we examine recent developments in the literature to assess whether standard modeling…

Abstract

Most current modeling approaches identify very small gains from trade reform. In this chapter, we examine recent developments in the literature to assess whether standard modeling approaches are mis-specifying, understating, or overstating the gains from trade reform. Key areas where the impacts of trade barrier reduction appear to be understated include the measurement of barriers; the aggregation of these barriers; process productivity gains, particularly those resulting from reallocation of resources between firms; product quality improvements and expansion of product variety; factor supply; and investment of gains from trade.

Details

New Developments in Computable General Equilibrium Analysis for Trade Policy
Type: Book
ISBN: 978-0-85724-142-9

Keywords

Article
Publication date: 14 September 2015

Bijan Bidabad

This paper aims to propose a procedure to remove international trade barriers globally. Trade is confronting various barriers in the present world, and this is due to the policies…

Abstract

Purpose

This paper aims to propose a procedure to remove international trade barriers globally. Trade is confronting various barriers in the present world, and this is due to the policies of governments to protect interests of their own citizens. Experience shows that trade barriers end up with incurring losses for both sides (traders) in practice, but a look at history of polemics on trade barriers removal in World Trade Organization (WTO) shows that countries are unable to overcome the obstacles they have created. Trade partners understand that removal of counter barriers is advantageous for both parties. In the meantime, being concerned of other party’s response impedes the benefits of free trade for all parties.

Design/methodology/approach

This proposition is based upon Islamic Sufism teachings. The propounded principles and goals are in accordance with high understanding of social and economic subtleties of humankind’s life. The authors try to form and formalize Islamic Sufi teachings to establish a base for compiling new international convention that facilitates international trade in all aspects.

Findings

To facilitate and promote international trade relations in short run, interested countries may accept a convention to remove all trade barriers among themselves all at once.

Research limitations/implications

The proposed convention does not go against General Agreement on Tariff and Trade and WTO, but it is complementary to both.

Practical implications

The proposed principles are actually shortcuts to what WTO may access in far futures.

Social implications

Islamic Sufism teachings can lead us to solve current international problems.

Originality/value

WTO has taken important steps to facilitate international trade. To reach the main goal of trade liberalization of WTO, a shortcut solution is proposed here.

Details

International Journal of Law and Management, vol. 57 no. 5
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 15 December 2023

Khadijeh Hassanzadeh, Kiumars Shahbazi, Mohammad Movahedi and Olivier Gaussens

This paper aims to investigate the difference between the impacts of indicators of trade barriers (TBs) on bankrupt enterprises (BEs), new enterprises (NEs) and other enterprises…

Abstract

Purpose

This paper aims to investigate the difference between the impacts of indicators of trade barriers (TBs) on bankrupt enterprises (BEs), new enterprises (NEs) and other enterprises (OEs).

Design/methodology/approach

The paper has used a multiple-step approach. At the first stage, the initial data has been collected from interviews with 164 top managers of SMEs in West Azerbaijan in Iran during two periods of 2013–2015 and 2017–2019. At the second step, multiple correspondence analysis has been used to summarize the relationships between variables and construct indices for different groups of TBs. Finally, the generalized structural equation model method was used to examine the impact of export barriers.

Findings

The results showed that the political legal index is the main TBs for BEs and NEs, but it had a more significant impact on BEs; the financial index was the second major TBs factor for BEs, while OEs did not have a problem in performance index, and the financial index was classified as a minor obstacle for them. All indicators of marketing barriers (except production index) had a negative and significant effect on all enterprises; the most important TBs for NEs was the information index.

Originality/value

The results indicated that if enterprises have a strong financial system and function, they can lessen the impact of sanctions and keep themselves in the market.

Details

European Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0955-534X

Keywords

Book part
Publication date: 24 September 2010

Philippa Dee and Ndiame Diop

The purpose of this chapter is to benchmark Tunisia against other emerging economies in terms of the regulatory barriers affecting particular services sectors and to assess the…

Abstract

The purpose of this chapter is to benchmark Tunisia against other emerging economies in terms of the regulatory barriers affecting particular services sectors and to assess the economy-wide effects of further liberalizing these services trade restrictions, compared with reducing the dispersion in barriers to its merchandise trade. On the basis of a rather restricted sample of services sectors, partial regulatory reform would yield gains roughly equivalent to full unilateral reform of manufacturing tariffs, but roughly one-tenth the gains from full bilateral reform of border protection in agriculture with the European Union. The adjustment costs associated with these services trade reforms would be minimal. The chapter identifies the reasons why the gains from these services reforms are relatively small and argues that a wider set of reforms could provide win-win outcomes and even fewer adjustment costs. By contrast, the gains in agriculture and manufacturing tend to come at the expense of domestic output in the reforming sectors – the gains are greater, but so too are the adjustment costs.

Details

New Developments in Computable General Equilibrium Analysis for Trade Policy
Type: Book
ISBN: 978-0-85724-142-9

Keywords

Article
Publication date: 14 March 2022

Abu H. Ayob, Joan Freixanet and Hazrul Shahiri

This study aims to integrate both internal and external factors to examine the effect of innovation and perceived trade barriers on firms’ export activity. In particular, the…

Abstract

Purpose

This study aims to integrate both internal and external factors to examine the effect of innovation and perceived trade barriers on firms’ export activity. In particular, the authors expand the scope of innovation into both technological (product and process) and non-technological (marketing and management) innovation. Furthermore, the authors examine the potential joint effect of perceived customs and trade barriers on firms.

Design/methodology/approach

The authors empirically test the hypotheses by using firm-level data from the World Bank Enterprise Survey during the most recent year available for each ASEAN country, together with both firm- and country-level controls from various data sources. Specifically, the final sample for analysis includes 3,602 firms from Cambodia (100), Indonesia (1157), Laos (99), Malaysia (445), the Philippines (719), Thailand (572) and Vietnam (510).

Findings

First, the results show that firm-specific innovation capabilities (including non-technological of managerial innovation) do matter for explaining export propensity. Furthermore, in contexts in which location-bound advantages are prevalent, the effects of innovation may disappear and further deteriorate performance in the post-entry stage. Second, the findings support the notion regarding the prevalence of country- over firm-specific advantages for the international expansion of companies from ASEAN countries. More specifically, this study holds that innovation does not matter for export intensity and that factors related to the location’s institutions appear to be more important.

Originality/value

First, it acknowledges and examines the effect of not only technological innovation, but also non-technological innovation on export intention. Second, the paper measures the institutional effect at the firm level, rather than as a country-specific factor, to better understand the combined effect of internal and external variables on firms’ export strategy. Furthermore, it performs a cross-country analysis while controlling for other confounding firm and macro factors. Third, the authors test the model on both pre-entry (export propensity) and post-entry (export intensity) stages. Finally, the study responds to calls for research that examines the international competitive advantages of firms from ASEAN countries.

Details

Journal of Asia Business Studies, vol. 17 no. 1
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 19 June 2017

Shawkat Alam and George F. Tomossy

The purpose of this paper is to address the challenges developing countries face in attempting to balance sanitary and phytosanitary measures (SPS) health and safety measures…

Abstract

Purpose

The purpose of this paper is to address the challenges developing countries face in attempting to balance sanitary and phytosanitary measures (SPS) health and safety measures against concerns about protectionism, illustrated by the impact of trade barriers on the fisheries and aquaculture sector in Bangladesh. The paper then provides recommendations to overcome the effects of these trade barriers.

Design/methodology/approach

The author uses a close doctrinal approach for the first three parts of the paper by analysing the provisions of the World Trade Organisation (WTO) SPS Agreement and the effect of those provisions in creating domestic compliance gaps in the Bangladeshi fisheries and aquaculture sector. A qualitative approach is then adopted in suggesting potential reforms and future directions to assist the Bangladeshi fisheries and aquaculture sector overcome SPS trade barrier issues.

Findings

To overcome the market access issues created by SPS trade barriers, Bangladesh and other developing countries require multilateral assistance, accommodation by trading partners and internal reforms. This includes reforming internal governance structures, improving trade participation and negotiation, increasing infrastructure investment and learning from similar countries who have improved their supply chain management.

Research limitations/implications

This paper will have significant implications by contributing to law and policy reform debates involving international trade law and domestic compliance gaps. It will also assist other developing countries that experience SPS trade barriers to learn from the experience of the Bangladeshi fisheries and aquaculture sector.

Practical implications

This paper has practical implications by providing recommendations for how Bangladesh can overcome SPS trade barriers and improve its market access. This will help Bangladesh integrate into the global trading system by enhancing its participation in the SPS framework.

Social implications

By addressing and providing recommendations for the SPS trade barrier challenges faced by Bangladesh fishery and aquaculture sector, this paper provides a framework to improve the economic development and global competitiveness of the industry. This will contribute the gross domestic product growth and help increase the overall living standards of the people involved in the fisheries and aquaculture business in Bangladesh.

Originality/value

This paper is an original work that has not been published elsewhere. It is the first time a paper has dealt with the legal, policy and compliance challenges faced by the fisheries and aquaculture sector in Bangladesh.

Details

Journal of International Trade Law and Policy, vol. 16 no. 2
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 27 May 2014

Ebony Benson and Kim Y. Hiller Connell

– The purpose of this study is to expand the knowledge base of Baby Boomers’ attitudes, behaviours and perceived barriers related to fair trade purchasing.

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Abstract

Purpose

The purpose of this study is to expand the knowledge base of Baby Boomers’ attitudes, behaviours and perceived barriers related to fair trade purchasing.

Design/methodology/approach

This study included 168 Baby Boomers. Data were collected through an online questionnaire. Data analysis included a combination of both quantitative (descriptive statistics, independent samples t-tests and correlation analysis) and qualitative techniques.

Findings

Findings indicated that the participants exhibited positive attitudes towards fair trade but were minimally engaged in fair trade purchasing. Furthermore, the participants perceived numerous barriers to purchasing fair trade products including the incompatibility of fair trade merchandise with lifestyles, the inability to touch and see fair trade products prior to purchase and difficulty in identifying fair trade items.

Research limitations/implications

A limitation of this study is that the sample was well-educated university faculty and it is not representative of all Baby Boomers.

Practical implications

Fair trade entities need to be more effective in marketing the advantages of the fair trade. Fair trade organizations should consider targeting marketing strategies specific to the unique demographic and psychographic characteristics of Baby Boomer consumers.

Originality/value

This research expands understanding of the consumer behaviours of US Baby Boomers related to fair trade. An additional contribution is the comparison of differences in fair trade knowledge, attitudes and behaviours of Early vs Late Baby Boomers. It also has potentially important implications for fair trade organizations, as the paper discusses marketing strategies specific to Baby Boomers.

Details

Social Responsibility Journal, vol. 10 no. 2
Type: Research Article
ISSN: 1747-1117

Keywords

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