International Business Commons^™

Two Models Of Virtual Transfer Pricing Mechanisms In Global Supply Chain, Kun Liao, Ke (Grace) Ke, Eldon Johnson, Yan Wang

All Faculty Scholarship for the College of Business

Supply chain is a network of financial flow while contract is a primary way of recognizing and distributing profits between buyer and supplier in a supply chain. Virtual transfer pricing defined in this study is the mechanism of using contract bundles within a global supply chain to maximize profit. We propose two virtual transfer pricing models.

Two Field Studies Examining The Association Between Positive Psychological Capital And Employee Performance, James B. Avey, James L. Nimnicht, Nancy Graber Pigeon

All Faculty Scholarship for the College of Business

Purpose – The purpose of this study is to examine the relationship between psychological capital (comprised of hope, optimism, efficacy and resilience) and employee performance through multiple studies and methods of data.

Design/methodology/approach – The study included two samples in a large financial firm headquartered in Melbourne, Australia. The employees' level of psychological capital were measured with the psychological capital questionnaire. Via regression, this was related to individual level financial performance data from the firm and manager rated performance.

Findings – As hypothesized, psychological capital was found to be related to employees' level of financial performance, referrals within the firm …

Regional Innovative Capacity In China: From The Perspective Of Embedded Autonomy, Ying Zhou, Xiaohua Yang, Rachel Parker, Paul Steffens

Entrepreneurship, Innovation, and Strategy

Innovation is widely considered as the core driver of nations' economic growth and competitiveness. Since the start of economic reform in 1978, the provincial governments in China have gained much autonomy, which has led to the co-existence of multi-level innovation systems, national innovation system and regional (provincial) innovation system. With the economic development and social progress, the disparities in innovative capacity (I C) among regions in China are becoming increasingly larger. Considering the unique innovation context of China and drawing upon the research on IC, this paper proposed to employ theories of embedded autonomy and governed interdependence, which was developed …

Foreign Produced Content And Japanese Price Disinflation: An Empirical Study, Peggy Takahashi, Daniel Blakley, Joel Oberstone, Yasuhiro Akiyama

Economics, Law, and International Business

This research investigates the role non-macroeconomic factors have played in subduing inflationary pressures in Japan. We investigate the hypothesis that the under-recognized presence of goods with high foreign produced content (FPC) in the consumer market basket has coincided with reduced price-level increases over the time period 1991-2004. An empirical examination and descriptive comparison of CPI market basket items and import data categories suggest the negative relationship between FPC and the CPI inflation rate over this time period is significant. Our conclusions suggest the extent to which measures of inflation are considered to be an accurate gauge of macroeconomic conditions or …

Sustainability Through Profitability: The Triple Bottom Line, Connie I. Reimers-Hild

Kimmel Education and Research Center: Presentations and White Papers

Today’s highly competitive, globalized world requires organizations and businesses to think differently about how they are going to stay in business. Businesses can no longer afford to focus on profits as their sole purpose for existence. Organizations must instead think about the “Triple Bottom Line” and its implications for their ability to grow their brand, customer loyalty and profits.

Endogenous Oca (Optimum Currency Area) Analysis And The Early Euro Experience, Thomas D. Willett, Orawan Permpoon, Clas Wihlborg

Business Faculty Articles and Research

Some have argued that the endogenous responses to the formation of a currency area are so strong that one need not worry about optimum currency area conditions ex ante. We argue that this is much too strong a conclusion. We draw on a number of recent studies to evaluate the endogeneity experiences of the eurozone in three major areas; trade flows, business cycle synchronisation and structural reforms to improve labour and product market flexibility. Simple before-and-after comparisons are insufficient for analysis of endogeneity. The experiences of non-euro Western European economies suggest that broader trends also had considerable influence on trade …

Labor Migration Challenges In Economic Planning: A Case Study Of Astana, Bolat L. Tibekov, Kamal Fatehi, Foad Derakhshan, Jim Herbert

Faculty Articles

The end of the cold war removed a major barrier against free trade and consequently, globalization of business spread economic developments around the world, created job opportunities, particularly in industrial sectors, which led to migration of many people who were in search of a better life. Newly independent countries have emerged and many have been, or are in the process of, integrating into various trade packs of the free market system. This labor migration has taken place at various levels. This work studies the attributes of domestic migration and the challenges it has created for economic and urban planning. The …

Dimensionality Of Business Ethics In China, Marc Sardy, J. Mark Munoz, James Jianmin Sun, Ilan Alon

Faculty Publications

Purpose – The purpose of this paper is to explore the ethical dimensions in China. It reviews the extant business ethics literature on China, collects data on ethical conduct from a large Chinese university, and analyzes the data to examine emerging trends. Design/methodology/approach – Factor analysis and multidimensional scaling (MDS) are applied to an established survey instrument after reliability is confirmed. Findings – Principal-components factor analysis uncovers six main factors. MDS further reduces the explanatory variables into four ethical dimensions, while increasing the number of useable observations. These four dimensions are then correlated with some demographic and psychographic variables. Results …

Trends In International Compulsory Licensing Of Pharmaceuticals Since The Institution Of The Trade-Related Aspects Of Intellectual Property Protection (Trips) Agreement, Reed F. Beall

Electronic Theses and Dissertations

The Trade-related Aspects of Intellectual Property Rights (TRIPS) Agreement went into effect for World Trade Organization (WTO) members in 1995. The agreement defines minimum standards of patent protection that must eventually be observed by all signatories. TRIPS includes "compulsory licensing", a policy that allows for states under certain conditions to permit the use of a patented innovation without the consent of the patent holder. This paper considers instances of compulsory licenses (CLs) aimed to increase access to pharmaceuticals during urgent public health scenarios. The WTO maintains no registry of CLs; therefore, this research is an effort to catalog as many …

A Common Eurozone Bond, Erik Welin

WCBT Undergraduate Publications

Introduction

The sovereign bond yields of the Eurozone, or more correctly the euro area, have since the introduction of the Euro undergone a bond yield compression. However, as can be seen in table 1, these bond yields started to diverge considerably around mid 2008 following the recent financial crisis and increased sovereign risk. Yields on Greek, Irish, and Portuguese bond have diverged the most from for example German bonds. Based upon this and the ongoing economic integration within the EU and Eurozone, proposals for a common Eurozone bond have been raised. There are many pros and cons with such a …

The Effects Of The Country Of Brand And The Country Of Manufacturing Of Automobiles: An Experimental Study Of Consumers' Brand Personality Perceptions, Marc Fetscherin, Mark Toncar

Faculty Publications

Purpose: This paper offers a new perspective of country of origin effects on consumers’ brand personality perceptions of domestic and imported automobiles. It assesses the perceived similarities and differences between automobiles from two countries with respect to the country of origin of the brand (COB) and the country of manufacturing (COM) of that same brand.

Design/methodology/approach: An experimental design was used to investigate developed country consumers’ brand personality perceptions of three cars; a domestic car, a car manufactured in a developing country by a developing country manufacturer, and a car from developing country manufacturer that is manufactured in the developed …

Tao Of Downfall: The Failures Of High-Profile Entrepreneurs In The Chinese Economic Reform, Wenxian Zhang, Ilan Alon

Faculty Publications

Through historical reviews and case studies, this research seeks to understand why some initially successful entrepreneurs failed in the economic boom of past decades. Among various factors contributed to their downfalls are a unique political and business environment, fragile financial systems, traditional cultural influences and personal characteristics. Notwithstanding that these factors should be further tested through empirical studies, those high-profile entrepreneurs are oblivious but essential actors in the grand theatre of China's economic transformation and their failures have contributed to the swift development of the Chinese entrepreneurship over the last 30 years.

The Role And Importance Of The Chinese Government For Chinese Outward Foreign Direct Investments, Marc Fetscherin, Philippe Gugler

Faculty Publications

Chinese outward direct investments show a strong positive trend over recent years and have attracted considerable attention from academia and the business press. Many observers and commentators express interest in the role the Chinese government plays in the activities and decision-making of Chinese multinational enterprises (MNEs) in connection with their foreign direct investments (FDI). This article makes a contribution by investigating the relationship between the Chinese government and MNEs in connection with their outward foreign direct investment (OFDI). We present a 2x2 matrix where one dimension includes the interest (high/low) of the Chinese government and the other the interest of …

Managing Foreign Corrupt Practices Act Risks Of Gift, Travel And Entertainment Expenditures, Karl Boedecker

Economics, Law, and International Business

Significant increases in Foreign Corrupt Practices Act enforcement activities have heightened the legal risks associated with giving gifts or paying travel and entertainment expenses for U.S. firms when promoting their goods or services in foreign markets. This change in the external environment necessitates appropriate strategic adjustments and managerial actions. The lack of specific standards of conduct under the FCPA’s general prohibitions requires that U.S. firms closely monitor the increasing number of investigations and legal actions initiated by the U.S. Securities Exchange Commission and the U.S. Department of Justice.

Pelaksanaan Instrumen Pelaburan Islam Di Islamic Bank Of Thailand (Isbt)., Fatimah Abdulmajid @ Ahmae

Student Works (2010-2019)

This research was carried out at Islamic Bank Of Thailand (ISBT), Wattana district, Bangkok, Thailand. The objectives of this study are try to observe and evaluate the performance and implementation of its Islamic investment instruments then analysis the performance and implementation, its effective and problem in its implementation. First chapter will describe the meaning of investment in both conventional and Islamic economic system. Chapter two will focus on Islamic Bank Of Thailand (ISBT) where will consist of history towards establishing of Islamic financial institution in Thailand, Muslim societies economic situation in Thailand until the existence of Islamic Bank Of Thailand …

Towards A Center For Modeling And Simulation: The Case For Jordan, Ghaith Rabadi, Hazem Kaylani, Joseph Barjis (Ed.), Murali Mohan Narasipuram (Ed.), Ghaith Rabadi (Ed.), Jolita Ralyt (Ed.), Pierluigi Plebani (Ed.)

Engineering Management & Systems Engineering Faculty Publications

Modeling and Simulation (M&S) has recently become an important area that is pursued by many researchers and practitioners due to the role it plays in understanding complex systems and problems. We have therefore witnessed the establishment of many M&S organizations in the last two decades especially in the more developed world. Less developed countries are starting to recognize the need for such capability especially that the problems they face are not less complex. In this paper, we present a preliminary study towards a business plan for establishing a scientific center for Modeling, Analysis, Simulation and Animation in Jordan (JoSAMA) and …

The Impact Of Monetary Regimes On International Trade Are Eu Experiences Relevant For Asia?, Apanard P. Angkinand, Clas Wihlborg

Business Faculty Articles and Research

We extend much research that has been devoted to the effects of the European Monetary Union (EMU) on international trade by introducing monetary regime variables in bilateral export equations with the objective of capturing the effects on trade of changes in monetary regimes relative to the pure EMU effects. To make the analysis relevant from an Asian perspective trade effects of the EU’s internal markets are also separated from EMU effects. To identify these different effects we include three groups of countries in our sample: EMU countries which are also members of the EU, EU countries outside the EMU and …

Competitive Priorities And Strategic Consensus In Emerging Economies: Evidence From India, Ravi Kathuria, Stephen J. Porth, N. N. Kathuria, T. K. Kohli

Business Faculty Articles and Research

Purpose

– The purpose of this paper is to understand the competitive priorities of manufacturers in India, and examine the level of agreement or strategic consensus between senior executives and manufacturing managers on manufacturing competitive priorities in light of the prevalent culture.

Design/methodology/approach

– Survey data collected from 156 respondents from 78 manufacturing units based on a national sample in India are used to test the hypotheses using the paired samples t‐tests and multivariate analysis of variance.

Findings

– A relatively high emphasis by both levels of managers on quality, compared to the other three competitive priorities, is noteworthy and …

The Impact Of Interorganizational Imitation On New Venture International Entry And Performance, Stephanie A. Fernhaber, Dan Li

Scholarship and Professional Work - Business

We examine the impact of interorganizational imitation on new venture international entry and subsequent performance. Using a sample of 150 U.S.-based publicly held new ventures, we find that new venture international entry is in part an imitative response to the internationalization of other firms in the venture's home country industry and/or subsets of firms with certain traits or outcomes. We also find that interorganizational imitation moderates the relationship between new venture international entry and profitability, but not the relationship between new venture international entry and sales growth. These findings contribute to the growing body of literature on new venture internationalization.

Tunneling As An Incentive For Earnings Management During The Ipo Process In China, Jiwei Wang, Joseph Aharony, Hongqi Yuan

Research Collection School Of Accountancy

Using a sample of 185 Chinese IPO firms listed on the Shanghai Stock Exchange during the period 1999-2001, we show that related-party (RP) sales of goods and services could be used opportunistically to manage earnings upwards in the pre-IPO period. We also provide evidence that such behavior may be motivated by the prospect of tunneling opportunities in the post-IPO period, i.e., exploiting economic resources from minority shareholders for the benefit of the parent company. We provide evidence of one such opportunistic tunneling tool: non-repayment by Chinese parent companies of net outstanding corporate loans made to them by their newly listed …

Do Values Or Goals Better Explain Intent? A Cross-National Comparison, Marianela Fornerino, Alain Jolibert, Carol M. Sanchez, Mengxia Zhang

Peer Reviewed Articles

Among six major lines of inquiry on motivations, two theories are especially pertinent to consumer behavior studies: values and goals. Several studies show that consumer behavior can be predicted on the basis of values or goals; this study examines which are the stronger predictors by presenting a cross-cultural comparison of the values and goals that may influence the behavioral intentions of U.S., Chinese, and French students to study abroad. As a service, study abroad has financial implications, represents a choice, and competes with other educational products. Therefore, goals appear to explain behavioral intentions better than do values, except among U.S. …

Immigrant Business Enterprises: A Classification Framework Conceptualization And Test, Roberto Curci, Robert Mackoy

Scholarship and Professional Work - Business

This article proposes the Immigrant Business Enterprises Classification Framework to organize immigrant-owned businesses into categories associated with different levels of business integration into a host country's mainstream business community. The article applies the framework and reports the findings of structured face-to-face interviews with 199 Hispanic business enterprises (HBEs) in Indianapolis. The authors find Hispanic-owned businesses hold different characteristics depending upon the integration category in which they are classified; the findings suggest that to support immigrant entrepreneurship, governments, business development organizations, and researchers should address category-specific challenges, opportunities, and needs.

Utilisation Of Foreign Trade Zones In The Global Supply Chain: An Exploratory Study, Hokey Min, Thomas E. Lambert

Management Faculty Publications

Foreign Trade Zones (FTZs) are considered duty-free areas and, thus, not governed by the usual customs and tariff controls. In other words, the merchandise permitted in the FTZ may be stored, sold, exhibited, labelled, repacked, assembled, distributed and mixed with other merchandise without paying customs duty until merchandise is released from the zone. Deferred customs duties in the FTZs can contribute significantly to the profitability of the Multinational Firms (MNFs) that get involved in global supply chain activities. Thus, the utilisation of FTZs is believed to have a positive impact on export/import operations and the location decisions of MNFs. Despite …

Spain And The 2004 Expansion Of The European Union: A Case Of Fdi Diversion?, Christopher M. Preston

CMC Senior Theses

With the expansion of the European Union there have been concerns over increasing competition for FDI attraction between member states. This study will examine to what extent, if to any extent at all, the admission of the Central and Eastern countries to the EU has raised completion for FDI in Spain. Spain and the CEECs will be compared in terms of advantages in FDI attraction. Ultimately, evidence and analysis will suggest that given current trend, there is no serious threat to diverting foreign assets from Spain to the CEECs.

A Study Of The Effect Of Economic Policies On The Domestic Film Market, Gyeoreh Lee

MPA/MPP/MPFM Capstone Projects

These days, the U.S. films’ market share in the world is almost 70 percent and many countries have devised various means, including import quota, screen quota, subsidy, and tax concessions to protect the domestic film industry by preserving local film’s market share against U.S. film domination. Retaining these policies has important symbolic reasons because market share of the domestic film is related to preserving each country’s cultural sovereignty. However, the effectiveness of the economic policies is murky. If the policies do not bring any advantageous effect to the domestic film industry, there is no rational justification for sticking with them. …

Cyber Transportation Logistics: Architecting A Global Value-Chain For Services, Yupo Chan, Jaouad Boukachour, Chia-Chu Chiang, Madan Mohan Dey, Charles-Henri Fredouët, Hing-Po Lo, Farhad Moeeni, Albert K. Toh

Faculty Publications

In today’s global economy, products and services are provided across international borders. The sourcing of these products and services becomes an integral part of international businesses. Information, communication and transportation technologies (ICTT) have made this job significantly more streamlined. However, there is an advantage that big companies, such as Wal-Mart, have over small and medium size ones. While the big companies have the ICTT resources to source globally at will, small and medium enterprises (SME) are much less prepared to do so, resulting in a large competitive disadvantage. By contrasting SMEs with their more successful “big brothers,” we highlight the …

The Shifting Geography Of Competitive Advantage: Clusters, Networks And Firms, Mark Jenkins, Stephen Tallman

Management Faculty Publications

We consider the dynamics of knowledge-based sources of advantage as they move between geographical locations and multinational and other firm level networks using the specialist context of Formula 1 motor over a fifty nine year period. We suggest that shifts in competitive advantage are underpinned by the movement of both architectural and component knowledge at both the firm and cluster level, and in particular we suggest that isolated firms can both benefit from and add to cluster level knowledge. We conclude by suggesting ways in which MNEs can adapt their approach to both location and knowledge development in order to …

From Federations To Global Factories: Assessing The Contribution Of The Subsidiary Middle Manager In Today’S Mne, Donal O'Brien, Pamela Sharkey Scott, Pat Gibbons

Articles

The evolution of MNEs (Multinational Enterprises) from rigid and hierarchical structures to more distributed authority and autonomy led to the theoretical justification for conceptualising them as a federative rather than unitary organisations (Ghoshal and Bartlett, 1990). Fundamental to the Federative MNE is the suggestion that subsidiary units, through their own actions, can modify the power base and influence MNE strategy ‘from below’ (Andersson et al., 2007). Considerable research highlights the potential of subsidiary units for knowledge creation and initiative (Birkinshaw, 1997, Rugman and Verbeke, 2001, Williams, 2009), but to date it has failed to confirm that MNEs actually operate as …

Capm In Up And Down Markets: Evidence From Six European Emerging Markets, Jianhua Zhang, Clas Wihlborg

Business Faculty Articles and Research

The pricing of equity in six European emerging capital markets is analysed using both the conventional CAPM and a ‘conditional’ CAPM wherein up and down markets are separated. International influences on the stock markets are also analysed. The empirical evidence from a sample of 1,131 firms from the six markets indicates that there exists a significant relationship between beta and returns when up and down markets are separated. The international CAPM performs well in some markets that have become increasingly integrated with the world market. The general implication of the analysis is that beta can be a useful risk-measure for …

How Does Foreign Direct Investment Affect Growth In Developing Countries? An Empirical Investigation, E. M. Ekanayake, John R. Ledgerwood

Publications

This paper analyzes the effects of foreign direct investment on the economic growth of developing countries. The study uses annual data on a group of 85 developing countries covering Asia, Africa, and Latin America and the Caribbean for the period 1980-2007. We explore the hypothesis that foreign direct investment can promote growth in developing countries. We test this hypothesis using panel data series for foreign direct investment, while accounting for regional differences in Asian, African, Latin American, and the Caribbean countries as well as the differences in income levels. While the findings of previous studies are generally mixed, our results …