This document discusses the challenges facing multilateral trade liberalization through the WTO after the failure of the 2011 ministerial meeting to advance the Doha Round. It argues that while tensions exist between developed and developing countries, the situation is more complex as emerging markets now play a larger role globally. It also notes tensions between emerging markets themselves as their trade and production structures become more similar. The document then explores potential alternatives to the single undertaking approach of the Doha Round, such as sectoral plurilateral agreements, but notes these could create problems or imbalances. It concludes that regional trade agreements will likely continue to proliferate in the absence of multilateral progress for the foreseeable future.
This paper proposes a new method for measuring the degree to which the domestic capital stock is self-financed. The main idea is to use the national accounts to construct a self-financing ratio, indicating what would have been the autarky stock of tangible capital supported by actual past domestic past saving, relative to the actual stock of capital. We use the constructed measure of self-financing to evaluate the impact of the growing global financial integration on the sources of financing domestic capital stocks in developing countries. On average, 90% of the stock of capital in developing countries is self financed, and this fraction was surprisingly stable throughout the 1990s. The greater integration of financial markets has not changed the dispersion of self-financing rates, and the correlation between changes in de-facto financial integration and changes in self-financing ratios is statistically insignificant. There is no evidence of any "growth bonus" associated with increasing the financing share of foreign savings. In fact, the evidence suggests the opposite: throughout the 1990s, countries with higher self-financing ratios grew significantly faster than countries with low self-financing ratios. This result persists even after controlling growth for the quality of institutions. We also find that higher volatility of the self-financing ratios is associated with lower growth rates, and that better institutions are associated with lower volatility of the self-financing ratios. These findings are consistent with the notion that financial integration may have facilitated diversification of assets and liabilities, but failed to offer new net sources of financing capital in developing countries.
Authored by: Joshua Aizenman, Brian Pinto, Artur Radziwill
Published in 2004
This paper confronts the traditional balance-of-payments (BoP) analytical framework (with its dominant focus on the size of a given country’s current account imbalance and its external liabilities) with the contemporary realities of highly integrated international capital markets and cross-country capital mobility. Some key implicit assumptions of the traditional framework like those of a fixed residence of capital owners and home country bias are challenged and an alternative set of assumptions is offered. These reflect the unrestricted character of private capital flows (with no “home country bias” and fixed domicile) determined mostly by the expected rate of return. As a result, the importance of BoP constraints (in their “orthodox” interpretation) diminishes and they disappear completely with respect to individual member states within a highly integrated monetary union. This does not mean, however, immunization from other kinds of macroeconomic risks.
Authored by: Marek Dąbrowski
Published in 2006
In this article, the issues that have captured the attention of researchers in multinational corporations (MNC) are
discussed and the emerging research agenda is laid out. The first part focuses on understanding the history, and
contemporary scale and significance of multinationals as economic actors. Two opposing perspectives are
distinguished, the economic and the political. In the past, there was a rigid divide between these but,
increasingly, researchers are using elements of both perspectives to understand the dynamics of multinationals.
The crucial additional feature here is the importation of insights from institutional literature on the relationship
between firms and national contexts. Multinational corporations (MNCs) are playing a large and growing role in
shaping our world, both economically and politically. Public and academic opinion has long been mired in an
inconclusive debate as to whether these phenomena are beneficial things that should be encouraged or harmful
things that need intensive governmental regulation. The integrating thesis of this book is that the question as to
whether they are good or bad is the wrong question and is based on the fundamentally faulty premise that all
foreign subsidiaries are essentially similar, i.e., MNCs are homogeneous entities The inevitability of
heterogeneity results in the imperatives of disaggregation and the fallacy of generalization if these complex,
differentiated phenomena are to be properly understood.
This document summarizes a working paper that examines the statistical properties of current account balances and their determinants across 70 countries. It finds that once regime shifts are allowed for using Markov-switching models, the null hypothesis of a unit root can be rejected for more countries than with standard linear unit root tests. The paper also investigates what country characteristics, such as exchange rate regimes, financial openness, and macroeconomic fundamentals, help explain differences in the likelihood of entering non-stationary current account regimes and in the degree of current account persistence across regimes.
Taking the Investor Perspective with SenseMaker® Marcus Guest
The joint study by KPMG and RSPP in 2013 looked at foreign business investors' perspectives on the regional investment climate in Russia. Key findings included:
- Foreign investors chose Russia primarily for large market opportunities outside of energy and natural resources, showing Russia's growing diversification.
- While overall investor confidence was improving, it varied significantly between regions depending on investors' interactions with regional governments.
- Regional readiness to attract investors often failed to meet specific industry needs.
- Corruption may have been responsible for the failure of as many as 1 in 7 potential investments.
- A few regions were praised for making FDI a priority and putting investors' perspectives at the heart of their strategies.
This document discusses a study that aimed to better understand how internal and external factors impact the market performance of small and medium businesses (SMBs) in Croatia, particularly fast-growing SMBs. The study examined how eight internal factors and three external factors influence the sales growth and goal achievement of SMBs. The results confirmed that the analyzed internal and external factors have more or less significant impacts on SMB performance depending on the business's lifecycle stage and general economic conditions.
This presentation examines the effects of macroeconomic variables on the profitability of listed commercial banks in Pakistan. It aims to determine the impact of inflation, GDP, and exchange rates on bank profitability, as measured by return on assets and equity. The study uses a sample of commercial banks listed on the Pakistani stock exchange. Regression analysis will be performed to analyze the relationship between the macroeconomic independent variables and the dependent variable of bank profitability. The objective is to provide insights that can help strategies for commercial bank development in Pakistan.
This paper proposes a new method for measuring the degree to which the domestic capital stock is self-financed. The main idea is to use the national accounts to construct a self-financing ratio, indicating what would have been the autarky stock of tangible capital supported by actual past domestic past saving, relative to the actual stock of capital. We use the constructed measure of self-financing to evaluate the impact of the growing global financial integration on the sources of financing domestic capital stocks in developing countries. On average, 90% of the stock of capital in developing countries is self financed, and this fraction was surprisingly stable throughout the 1990s. The greater integration of financial markets has not changed the dispersion of self-financing rates, and the correlation between changes in de-facto financial integration and changes in self-financing ratios is statistically insignificant. There is no evidence of any "growth bonus" associated with increasing the financing share of foreign savings. In fact, the evidence suggests the opposite: throughout the 1990s, countries with higher self-financing ratios grew significantly faster than countries with low self-financing ratios. This result persists even after controlling growth for the quality of institutions. We also find that higher volatility of the self-financing ratios is associated with lower growth rates, and that better institutions are associated with lower volatility of the self-financing ratios. These findings are consistent with the notion that financial integration may have facilitated diversification of assets and liabilities, but failed to offer new net sources of financing capital in developing countries.
Authored by: Joshua Aizenman, Brian Pinto, Artur Radziwill
Published in 2004
This paper confronts the traditional balance-of-payments (BoP) analytical framework (with its dominant focus on the size of a given country’s current account imbalance and its external liabilities) with the contemporary realities of highly integrated international capital markets and cross-country capital mobility. Some key implicit assumptions of the traditional framework like those of a fixed residence of capital owners and home country bias are challenged and an alternative set of assumptions is offered. These reflect the unrestricted character of private capital flows (with no “home country bias” and fixed domicile) determined mostly by the expected rate of return. As a result, the importance of BoP constraints (in their “orthodox” interpretation) diminishes and they disappear completely with respect to individual member states within a highly integrated monetary union. This does not mean, however, immunization from other kinds of macroeconomic risks.
Authored by: Marek Dąbrowski
Published in 2006
In this article, the issues that have captured the attention of researchers in multinational corporations (MNC) are
discussed and the emerging research agenda is laid out. The first part focuses on understanding the history, and
contemporary scale and significance of multinationals as economic actors. Two opposing perspectives are
distinguished, the economic and the political. In the past, there was a rigid divide between these but,
increasingly, researchers are using elements of both perspectives to understand the dynamics of multinationals.
The crucial additional feature here is the importation of insights from institutional literature on the relationship
between firms and national contexts. Multinational corporations (MNCs) are playing a large and growing role in
shaping our world, both economically and politically. Public and academic opinion has long been mired in an
inconclusive debate as to whether these phenomena are beneficial things that should be encouraged or harmful
things that need intensive governmental regulation. The integrating thesis of this book is that the question as to
whether they are good or bad is the wrong question and is based on the fundamentally faulty premise that all
foreign subsidiaries are essentially similar, i.e., MNCs are homogeneous entities The inevitability of
heterogeneity results in the imperatives of disaggregation and the fallacy of generalization if these complex,
differentiated phenomena are to be properly understood.
This document summarizes a working paper that examines the statistical properties of current account balances and their determinants across 70 countries. It finds that once regime shifts are allowed for using Markov-switching models, the null hypothesis of a unit root can be rejected for more countries than with standard linear unit root tests. The paper also investigates what country characteristics, such as exchange rate regimes, financial openness, and macroeconomic fundamentals, help explain differences in the likelihood of entering non-stationary current account regimes and in the degree of current account persistence across regimes.
Taking the Investor Perspective with SenseMaker® Marcus Guest
The joint study by KPMG and RSPP in 2013 looked at foreign business investors' perspectives on the regional investment climate in Russia. Key findings included:
- Foreign investors chose Russia primarily for large market opportunities outside of energy and natural resources, showing Russia's growing diversification.
- While overall investor confidence was improving, it varied significantly between regions depending on investors' interactions with regional governments.
- Regional readiness to attract investors often failed to meet specific industry needs.
- Corruption may have been responsible for the failure of as many as 1 in 7 potential investments.
- A few regions were praised for making FDI a priority and putting investors' perspectives at the heart of their strategies.
This document discusses a study that aimed to better understand how internal and external factors impact the market performance of small and medium businesses (SMBs) in Croatia, particularly fast-growing SMBs. The study examined how eight internal factors and three external factors influence the sales growth and goal achievement of SMBs. The results confirmed that the analyzed internal and external factors have more or less significant impacts on SMB performance depending on the business's lifecycle stage and general economic conditions.
This presentation examines the effects of macroeconomic variables on the profitability of listed commercial banks in Pakistan. It aims to determine the impact of inflation, GDP, and exchange rates on bank profitability, as measured by return on assets and equity. The study uses a sample of commercial banks listed on the Pakistani stock exchange. Regression analysis will be performed to analyze the relationship between the macroeconomic independent variables and the dependent variable of bank profitability. The objective is to provide insights that can help strategies for commercial bank development in Pakistan.
This document summarizes a research paper that analyzes the impact of institutional distance on foreign direct investment (FDI) inflows to the Czech Republic. It discusses how previous literature has found that institutional distance discourages FDI, but these studies looked at countries with larger institutional differences. The Czech Republic provides an interesting case since it has institutional standards relatively close to both Western countries and other transitional economies. The paper uses a gravity model to test how institutional distance specifically impacts FDI in the Czech Republic, focusing on whether a moderate level of institutional distance deters investment as strongly. It aims to increase understanding of multinational enterprises' ability to deal with some institutional differences.
This document provides an overview of a term report on entrepreneurship in international business, specifically focusing on small and medium enterprises (SMEs) internationalization. It defines international entrepreneurship and describes the research domain. It then provides a framework for studying the antecedents and outcomes of SME and new venture internationalization. It concludes by outlining avenues for future research.
Jussi Siltanen - Emerging market multinationals internationalization motivatorsJussi Siltanen
This document summarizes recent theories on the internationalization motivators of emerging market multinationals (EMMs). It reviews literature that proposes new perspectives on EMM internationalization drivers related to knowledge seeking. While traditional internationalization theories were developed using data from developed markets, some research suggests they may need adapting to fully explain EMM behavior. The document focuses on theories that provide different views on EMM internationalization motivators, especially regarding knowledge acquisition.
Entrepreneurship as a determinant of fdi in case of georgiaAzer Dilanchiev
Abstract
Attraction of Foreign Direct Investment (FDI) is the one of the main priorities for Georgia. Liberal investment environment and
equal approach to local and foreign investors makes country as an attractive destination for FDI. The paper focuses on relation
between entrepreneurship and FDI in case of Georgia, to find out the role that entrepreneurship takes as a determinant of FDI.
The paper empirically proves that in order to attract FDI, development of entrepreneship is vital.
This document discusses the need for Russia to promote economic development through innovation and entrepreneurship. It proposes establishing Centers of Competence (CCs) at Russian universities to better link research and industry. CCs would integrate university knowledge, industry expertise, and government support to boost regional economic growth through commercialization of innovations. The first proposed CC would be at Perm National Research Polytechnic University to engage stakeholders in developing and applying new technologies. CCs aim to help diversify Russia's economy beyond natural resources and better compete globally through technology and knowledge-based growth.
- The RMB's rise as an international currency is inevitable due to China's economic size and trade relationships. However, this process will be gradual rather than straightforward, described as "creeping internationalization."
- Currently, offshore RMB is primarily used for trade settlement, investment flows, and reserve management. Trade settlement in RMB is growing rapidly, led by Hong Kong, though it remains a small percentage of global trade. Investment flows are expected to drive more innovation in offshore RMB markets.
- Countries deepening economic ties with China will increase RMB holdings for strategic reasons, even if trade and investment are not yet substantial. New offshore RMB hubs will emerge alongside Hong Kong, with London and Singapore
An Empirical Analysis of Relationship between Private Equity Investments and ...Dr. Amarjeet Singh
During the last decade the growth in the private
equity industry in India has been phenomenal, especially in
the recent five years. Private equity industry has become the
prime interest area for many researchers and academicians in
India. Private equity industry in India is burgeoning area of
research, which inherits many explorations and untapped
potential areas of research. One such untapped area of
research is the empirical research is relationship between
Private equity investments and exits in India. The research
question which has leaded the study is that Private equity
industry being in its transition stage, does the performance
and opportunities created by the early starters has proven the
potential and invites more investors and investments? In this
line, this study is an attempt to assess the interrelationship and
causal effect in the relationship using VECM (Vector Error
Correction Model) and Granger causality model. The results
of the study confer that existence of long run causal relation
between Private Equity Investments and Private Equity Exits.
Thereby, the study emphasis the impact of private equity exits
on private equity investments in India. Private Equity Exit
opportunities for the investments made plays crucial role in
attracting Private Equity investments in India.
This document is a research proposal submitted by a student to analyze the process of strategy formation in international firms that were formerly headquartered in South Africa but have since relocated their headquarters to London, UK. The student proposes to examine the strategy formation processes within the London headquarters and compare them to the processes within the South African operations of these firms. The proposal provides background on the relocation of major South African firms to London in the late 1990s/early 2000s and identifies gaps in existing research on how relocation impacts strategy formation. It outlines the research problem, significance, delimitations and methodology to be used.
Opportunity to Foreign Investor in Kosovonakije.kida
Abstract: Purpose of the study is descriptive analysis of questionnaires investment of Kosovo. The main
findings of important contributions to the literature on the effects of FDI on economic growth are highlighted. In
the short and longterm, FDI do not cause an increase in Kosovo. On the other hand, FDI have been directed to
the services sector (with low added value). This proves that the aggregate effect of increasing investments is
unclear because different institutional components (business climate, weak enforcement of law, corruption, etc.),
have hindered the attraction of FDI. Identifying determinants of FDI, are important for compiling of FDI
promotion policy of certain types to contribute to the growth.
Keywords: FDI; Kosovo investment, Obstacles, Opportunities to Foreing Investment in Kosovo, Descriptive
analysis.
This document analyzes sources of funds and investment activities of venture capital funds in Germany, Israel, Japan, and the UK using a newly constructed dataset of around 500 venture capital firms. The summary examines:
1) Sources of venture capital funds differ significantly between countries, with banks most important in Germany, corporations in Israel, insurance companies in Japan, and pension funds in the UK.
2) Investment patterns also vary, with differences in the stage, sector, and location of financed companies between countries.
3) The analysis finds relationships between sources of funding and investment patterns, for example bank-backed venture capital firms invest later than individually or corporately-backed funds. It examines how financial systems relate to these activities
New entrepreneurs and business incubator initiators discussed enabling and constraining conditions for newcomers pursuing entrepreneurship in the Netherlands. Key enabling conditions included social networks that provide knowledge, skills, and clients. Constraints were a lack of information about regulations, an unfamiliar business culture, and negative stereotypes about refugees. Durable solutions proposed were connecting newcomer entrepreneurs to Dutch networks to expand social capital and knowledge of business practices and obligations.
Trade Policy Implications of Global Value Chains Dr Lendy Spires
The document analyzes the implications of global value chains for trade policy through four case studies. The first case study estimates that over 30% of total collected tariffs were paid on services value-added embedded in traded goods. It finds that services suppliers bear a substantive share of tariff costs across sectors and countries. The second case study analyzes Canada's unilateral removal of tariffs on manufacturing inputs, finding it significantly reduced effective protection and is expected to boost productivity through improved access to foreign intermediates. The third case study examines the Information Technology Agreement, finding parties have higher participation in IT global value chains but cumulative tariffs remain for industries not covered. The fourth case study finds regional trade agreements generally match major production networks, though coverage could
This document provides a summary of a thesis about emerging multinational companies from Central and Eastern Europe. The thesis analyzes different models of internationalization, the importance of foreign direct investment, and internationalization strategies through case studies of three companies from Poland and the Czech Republic. The thesis finds that companies from emerging markets can successfully compete globally and challenges the outdated view that multinationals only come from Western countries.
Globalization and the competitiveness of enterprises and economies in Baltic ...Gints Turlajs
On Baltic Sea Region Competitiveness and new definitions and approaches to national competitiveness. Some revolutionary innovations are presented in this presentation.
Doing business in russia research project vm consult 2011Вячеслав Макович
This document provides an overview of the Russian market for European managers. It summarizes the leading industries in Russia, including energy, construction, metallurgy, retail, automotive, ICT, and chemicals. It also identifies driving factors for Russia-EU business such as success stories of European companies in Russia, a simplified visa regime, and a growing Russian middle class. Finally, it outlines general challenges of doing business in Russia.
In recent years, the number of delisting shows dramatically increased in the world particularly
in China. This study will discuss on delisting focus in the context of China’s New Third Board Market (NTBM).
Furthermore, the delisted firms in China's New Third Board Market (NTBM) shows dramatically increased.
Moreover, this research is to make propositional statements and propose a framework to be tested empirically
in future studies. Based on agency theory, we proposed that there will be positive relationship among board
size, board independence,
International Business and Country Analysis: FinlandHassaan Elahi
This report is based on analyzing the international business opportunities in Finland for Pakistan and have also given in-depth country analysis of Finland based on current trends and most recent data related to different aspects of the country. In this report, objective of choosing Finland and its importance for Pakistan in trade relations has been given. Moreover, brief description and the evolution of the country have also been mentioned. The report has also given a detailed analysis of the country’s current political, socioeconomic and cultural scenarios and have also mentioned the risks associated with conducting and operating businesses in Finland for foreigners. Furthermore, the report has also analyzed the current economic trends of Finland by highlighting its key performance indicators that are used by the country, assessing its current trade performance, balance of payment and exchange rate situation both in the past and future, mode of trade used by the country, investment opportunities and trends, and key trading partners of the country with their share. The report has also analyzed the current industry situation of Finland by highlighting and assessing its key performing sectors, export and import oriented industries, export and import partners, as well as its current export and import market share. Moreover, Finland’s competitive advantage, its major resources and companies have also been mentioned. Lastly, the report has also given forecast of the next five years based on the analyzed data and have also suggested some solutions for the country to improve its major weaknesses. In addition, the report has also highlighted the ways in which Pakistan can reap benefit from Finland, how Pakistan can collaborate with this country and what exporters and government of Pakistan can do to maintain a long term robust trade relationship with Finland by providing mutual benefit to both the countries.
This document is the introduction to an undergraduate journal of economics published by the University of Texas at Austin. It provides an overview of the journal, including acknowledging those who supported its publication. It contains articles on various economics topics written by undergraduate students from universities around the country. The chair of the UT economics department praises the initiative shown by students in starting this journal and hopes it will inspire future economics research by undergraduates.
My people, uprooted a saga of the hindus of eastern bengal_ by tathagata royRavi Naid Gorle
The document provides context on the political situation in Bengal between 1905 and 1947. It discusses key political events such as the 1905 partition of Bengal by the British, the rise of the Indian National Congress and Muslim League as the main political parties, and the growing polarization between Hindus and Muslims. It also profiles important Bengali political leaders and examines how the politics of Bengal shaped in the lead up to the independence of India and subsequent partition, laying the groundwork for understanding the Hindu exodus from East Bengal.
1) The study compared three cow-calf production systems using simulation: a straightbred Nelore system, a system with Nelore cows producing Angus x Nelore calves, and a system with Gir cows producing Holstein x Gir calves.
2) In the base simulation, the Holstein x Gir system had the highest annual economic return at 10.84% compared to 5.21% for the Nelore system and 5.81% for the Angus x Nelore system.
3) Sensitivity analysis found that reducing the price of Holstein x Gir heifers such that it was only 1.2 times the beef calf price eliminated the economic superiority of the Holstein x Gir system over the other two
This document summarizes a research paper that analyzes the impact of institutional distance on foreign direct investment (FDI) inflows to the Czech Republic. It discusses how previous literature has found that institutional distance discourages FDI, but these studies looked at countries with larger institutional differences. The Czech Republic provides an interesting case since it has institutional standards relatively close to both Western countries and other transitional economies. The paper uses a gravity model to test how institutional distance specifically impacts FDI in the Czech Republic, focusing on whether a moderate level of institutional distance deters investment as strongly. It aims to increase understanding of multinational enterprises' ability to deal with some institutional differences.
This document provides an overview of a term report on entrepreneurship in international business, specifically focusing on small and medium enterprises (SMEs) internationalization. It defines international entrepreneurship and describes the research domain. It then provides a framework for studying the antecedents and outcomes of SME and new venture internationalization. It concludes by outlining avenues for future research.
Jussi Siltanen - Emerging market multinationals internationalization motivatorsJussi Siltanen
This document summarizes recent theories on the internationalization motivators of emerging market multinationals (EMMs). It reviews literature that proposes new perspectives on EMM internationalization drivers related to knowledge seeking. While traditional internationalization theories were developed using data from developed markets, some research suggests they may need adapting to fully explain EMM behavior. The document focuses on theories that provide different views on EMM internationalization motivators, especially regarding knowledge acquisition.
Entrepreneurship as a determinant of fdi in case of georgiaAzer Dilanchiev
Abstract
Attraction of Foreign Direct Investment (FDI) is the one of the main priorities for Georgia. Liberal investment environment and
equal approach to local and foreign investors makes country as an attractive destination for FDI. The paper focuses on relation
between entrepreneurship and FDI in case of Georgia, to find out the role that entrepreneurship takes as a determinant of FDI.
The paper empirically proves that in order to attract FDI, development of entrepreneship is vital.
This document discusses the need for Russia to promote economic development through innovation and entrepreneurship. It proposes establishing Centers of Competence (CCs) at Russian universities to better link research and industry. CCs would integrate university knowledge, industry expertise, and government support to boost regional economic growth through commercialization of innovations. The first proposed CC would be at Perm National Research Polytechnic University to engage stakeholders in developing and applying new technologies. CCs aim to help diversify Russia's economy beyond natural resources and better compete globally through technology and knowledge-based growth.
- The RMB's rise as an international currency is inevitable due to China's economic size and trade relationships. However, this process will be gradual rather than straightforward, described as "creeping internationalization."
- Currently, offshore RMB is primarily used for trade settlement, investment flows, and reserve management. Trade settlement in RMB is growing rapidly, led by Hong Kong, though it remains a small percentage of global trade. Investment flows are expected to drive more innovation in offshore RMB markets.
- Countries deepening economic ties with China will increase RMB holdings for strategic reasons, even if trade and investment are not yet substantial. New offshore RMB hubs will emerge alongside Hong Kong, with London and Singapore
An Empirical Analysis of Relationship between Private Equity Investments and ...Dr. Amarjeet Singh
During the last decade the growth in the private
equity industry in India has been phenomenal, especially in
the recent five years. Private equity industry has become the
prime interest area for many researchers and academicians in
India. Private equity industry in India is burgeoning area of
research, which inherits many explorations and untapped
potential areas of research. One such untapped area of
research is the empirical research is relationship between
Private equity investments and exits in India. The research
question which has leaded the study is that Private equity
industry being in its transition stage, does the performance
and opportunities created by the early starters has proven the
potential and invites more investors and investments? In this
line, this study is an attempt to assess the interrelationship and
causal effect in the relationship using VECM (Vector Error
Correction Model) and Granger causality model. The results
of the study confer that existence of long run causal relation
between Private Equity Investments and Private Equity Exits.
Thereby, the study emphasis the impact of private equity exits
on private equity investments in India. Private Equity Exit
opportunities for the investments made plays crucial role in
attracting Private Equity investments in India.
This document is a research proposal submitted by a student to analyze the process of strategy formation in international firms that were formerly headquartered in South Africa but have since relocated their headquarters to London, UK. The student proposes to examine the strategy formation processes within the London headquarters and compare them to the processes within the South African operations of these firms. The proposal provides background on the relocation of major South African firms to London in the late 1990s/early 2000s and identifies gaps in existing research on how relocation impacts strategy formation. It outlines the research problem, significance, delimitations and methodology to be used.
Opportunity to Foreign Investor in Kosovonakije.kida
Abstract: Purpose of the study is descriptive analysis of questionnaires investment of Kosovo. The main
findings of important contributions to the literature on the effects of FDI on economic growth are highlighted. In
the short and longterm, FDI do not cause an increase in Kosovo. On the other hand, FDI have been directed to
the services sector (with low added value). This proves that the aggregate effect of increasing investments is
unclear because different institutional components (business climate, weak enforcement of law, corruption, etc.),
have hindered the attraction of FDI. Identifying determinants of FDI, are important for compiling of FDI
promotion policy of certain types to contribute to the growth.
Keywords: FDI; Kosovo investment, Obstacles, Opportunities to Foreing Investment in Kosovo, Descriptive
analysis.
This document analyzes sources of funds and investment activities of venture capital funds in Germany, Israel, Japan, and the UK using a newly constructed dataset of around 500 venture capital firms. The summary examines:
1) Sources of venture capital funds differ significantly between countries, with banks most important in Germany, corporations in Israel, insurance companies in Japan, and pension funds in the UK.
2) Investment patterns also vary, with differences in the stage, sector, and location of financed companies between countries.
3) The analysis finds relationships between sources of funding and investment patterns, for example bank-backed venture capital firms invest later than individually or corporately-backed funds. It examines how financial systems relate to these activities
New entrepreneurs and business incubator initiators discussed enabling and constraining conditions for newcomers pursuing entrepreneurship in the Netherlands. Key enabling conditions included social networks that provide knowledge, skills, and clients. Constraints were a lack of information about regulations, an unfamiliar business culture, and negative stereotypes about refugees. Durable solutions proposed were connecting newcomer entrepreneurs to Dutch networks to expand social capital and knowledge of business practices and obligations.
Trade Policy Implications of Global Value Chains Dr Lendy Spires
The document analyzes the implications of global value chains for trade policy through four case studies. The first case study estimates that over 30% of total collected tariffs were paid on services value-added embedded in traded goods. It finds that services suppliers bear a substantive share of tariff costs across sectors and countries. The second case study analyzes Canada's unilateral removal of tariffs on manufacturing inputs, finding it significantly reduced effective protection and is expected to boost productivity through improved access to foreign intermediates. The third case study examines the Information Technology Agreement, finding parties have higher participation in IT global value chains but cumulative tariffs remain for industries not covered. The fourth case study finds regional trade agreements generally match major production networks, though coverage could
This document provides a summary of a thesis about emerging multinational companies from Central and Eastern Europe. The thesis analyzes different models of internationalization, the importance of foreign direct investment, and internationalization strategies through case studies of three companies from Poland and the Czech Republic. The thesis finds that companies from emerging markets can successfully compete globally and challenges the outdated view that multinationals only come from Western countries.
Globalization and the competitiveness of enterprises and economies in Baltic ...Gints Turlajs
On Baltic Sea Region Competitiveness and new definitions and approaches to national competitiveness. Some revolutionary innovations are presented in this presentation.
Doing business in russia research project vm consult 2011Вячеслав Макович
This document provides an overview of the Russian market for European managers. It summarizes the leading industries in Russia, including energy, construction, metallurgy, retail, automotive, ICT, and chemicals. It also identifies driving factors for Russia-EU business such as success stories of European companies in Russia, a simplified visa regime, and a growing Russian middle class. Finally, it outlines general challenges of doing business in Russia.
In recent years, the number of delisting shows dramatically increased in the world particularly
in China. This study will discuss on delisting focus in the context of China’s New Third Board Market (NTBM).
Furthermore, the delisted firms in China's New Third Board Market (NTBM) shows dramatically increased.
Moreover, this research is to make propositional statements and propose a framework to be tested empirically
in future studies. Based on agency theory, we proposed that there will be positive relationship among board
size, board independence,
International Business and Country Analysis: FinlandHassaan Elahi
This report is based on analyzing the international business opportunities in Finland for Pakistan and have also given in-depth country analysis of Finland based on current trends and most recent data related to different aspects of the country. In this report, objective of choosing Finland and its importance for Pakistan in trade relations has been given. Moreover, brief description and the evolution of the country have also been mentioned. The report has also given a detailed analysis of the country’s current political, socioeconomic and cultural scenarios and have also mentioned the risks associated with conducting and operating businesses in Finland for foreigners. Furthermore, the report has also analyzed the current economic trends of Finland by highlighting its key performance indicators that are used by the country, assessing its current trade performance, balance of payment and exchange rate situation both in the past and future, mode of trade used by the country, investment opportunities and trends, and key trading partners of the country with their share. The report has also analyzed the current industry situation of Finland by highlighting and assessing its key performing sectors, export and import oriented industries, export and import partners, as well as its current export and import market share. Moreover, Finland’s competitive advantage, its major resources and companies have also been mentioned. Lastly, the report has also given forecast of the next five years based on the analyzed data and have also suggested some solutions for the country to improve its major weaknesses. In addition, the report has also highlighted the ways in which Pakistan can reap benefit from Finland, how Pakistan can collaborate with this country and what exporters and government of Pakistan can do to maintain a long term robust trade relationship with Finland by providing mutual benefit to both the countries.
This document is the introduction to an undergraduate journal of economics published by the University of Texas at Austin. It provides an overview of the journal, including acknowledging those who supported its publication. It contains articles on various economics topics written by undergraduate students from universities around the country. The chair of the UT economics department praises the initiative shown by students in starting this journal and hopes it will inspire future economics research by undergraduates.
My people, uprooted a saga of the hindus of eastern bengal_ by tathagata royRavi Naid Gorle
The document provides context on the political situation in Bengal between 1905 and 1947. It discusses key political events such as the 1905 partition of Bengal by the British, the rise of the Indian National Congress and Muslim League as the main political parties, and the growing polarization between Hindus and Muslims. It also profiles important Bengali political leaders and examines how the politics of Bengal shaped in the lead up to the independence of India and subsequent partition, laying the groundwork for understanding the Hindu exodus from East Bengal.
1) The study compared three cow-calf production systems using simulation: a straightbred Nelore system, a system with Nelore cows producing Angus x Nelore calves, and a system with Gir cows producing Holstein x Gir calves.
2) In the base simulation, the Holstein x Gir system had the highest annual economic return at 10.84% compared to 5.21% for the Nelore system and 5.81% for the Angus x Nelore system.
3) Sensitivity analysis found that reducing the price of Holstein x Gir heifers such that it was only 1.2 times the beef calf price eliminated the economic superiority of the Holstein x Gir system over the other two
This study investigated the antioxidant and antimicrobial activities of cow urine and its distillate. The cow urine and distillate were tested for their ability to scavenge free radicals using two in vitro assays and for their antimicrobial activity against several microbes. The results showed that both the cow urine and its distillate exhibited antioxidant and antimicrobial activities by scavenging free radicals and inhibiting the growth of microbes. The fresh cow urine demonstrated stronger antioxidant and antimicrobial effects compared to its distillate. These findings provide scientific support for the traditional use of cow urine as a medicine in India.
This study analyzes spatial and temporal variations in wet periods over major river basins in India from 1951-2007. It defines five wet periods contributing different percentages to annual rainfall and examines characteristics like starting date, duration and rainfall intensity. It finds the 10% wet period typically occurs in July/August with 1-3 days duration and 44-89 mm/day rainfall. The 90% wet period lasts 112-186 days depending on location. Some central Indian basins saw increased rainfall intensity. Late starts of wet periods along the west coast correlated with warm Pacific Ocean temperatures several months prior.
Arthur (Lancelot) Bonner Plunkett was a British civil engineer born in 1890 in India who worked on infrastructure projects across the British Empire. He gained experience in India, Trinidad, the Bahamas, and Canada before returning to England where he started his own contracting company. Plunkett oversaw the design and construction of major water, drainage, and harbor works while holding engineering positions in India, Trinidad, the Bahamas, and Canada between 1911 and 1933. He died of throat cancer in London in 1937 at the age of 47.
Sir Annepu Parasuramdas Patro KCIE was an Indian politician and education minister in the Madras Presidency during the early 20th century. He was born into a wealthy family in Berhampur, Madras Presidency. Patro actively participated in the Oriya movement for a separate province of Odisha. He later served as the Minister of Public Works and Education from 1921 to 1926. During his tenure, he established the Andhra University and reformed the administration of Madras University. Patro also worked to promote the use of Telugu and supported reservations for scheduled castes in education.
This document discusses a study on occupational stress and health among teacher educators. The study aimed to examine the level of occupational stress experienced by teacher educators in relation to their gender and marital status, and the relationship between occupational stress and health. The study found that teacher educators experienced moderate levels of occupational stress on average. Statistical analysis revealed significant differences in occupational stress levels based on gender and marital status of teacher educators. A positive correlation was also found between occupational stress and health problems among teacher educators.
The article discusses the ongoing negotiations of the WTO Doha Round, which have been stalled for 10 years. Some argue the round is dead and should be abandoned to avoid further damaging the WTO's credibility, while others remain optimistic. The article aims to present a broad view of the situation at the WTO and recommendations for the upcoming WTO Ministerial Conference in December 2011. It provides background on debates prior to launching the Doha Round and analyzes outputs and outcomes so far in changing global conditions.
20120912 IFIA Speech Making Sense of the MazeMartin Moloney
1) The regulatory process is complex with many overlapping discussions happening simultaneously across different international bodies, making it confusing for industry to navigate.
2) However, common goals set by the G20 have provided coherence and led to surprisingly consistent outcomes in many areas, such as derivatives trading regulations, despite the lack of centralized coordination.
3) Where approaches differ across jurisdictions, the concept of "equivalence" may be important in determining how different regulatory systems can interact.
A glimpse from the multi year expert meeting on Improving all forms of cooper...Ira Kristina Lumban Tobing
This document summarizes the proceedings of the fourth session of the Multi-year Expert Meeting on Promoting Economic Integration and Cooperation. Key points discussed included:
1) Challenges facing developing countries in the current macroeconomic environment, including vulnerability to financial instability and external economic shocks. Public investment was proposed as a way to boost resilience.
2) Issues of rising public debt levels in many developing nations since the 2008 crisis. Debt poses a risk but capital controls have helped in some countries.
3) Evidence of "premature deindustrialization" occurring at lower income levels in developing regions today compared to histories. Industrial policy is important to prevent or mitigate this.
The Panel on Defining the Future of Trade was established in 2012. The Panel was mandated to: “….examine and analyse challenges to global trade opening in the 21st century” against the background of profound transformations occurring in the world economy, looking “at the drivers of today’s and tomorrow’s trade, […] at trade patterns and at what it means to open global trade in the 21st century, bearing in mind the role of trade in contributing to sustainable development, growth, jobs and poverty alleviation.” This is the Report of the Panel.
The document discusses how mega-regional trade and investment initiatives in Asia, including the ASEAN Economic Community (AEC), China's One Belt One Road initiative, and the Trans-Pacific Partnership (TPP), will shape business strategy in ASEAN and beyond. It notes that while ASEAN economies have benefited from globalization, the global economic order is shifting with the rise of China. Mega-regionals are emerging to facilitate deeper integration within regions. By improving infrastructure and regulations, they will create business opportunities but also increase competition across the region.
1) After the Asian financial crisis, Asian economies shifted to more flexible exchange rate regimes to reduce vulnerability to currency crises, while still maintaining some intervention to prevent large fluctuations. This created more room for monetary policy autonomy.
2) Equity market integration has increased within ASEAN and globally, indicating financial shocks can spread rapidly across Asian markets. The risk of contagion may increase if foreign investors treat ASEAN equities as one asset class.
3) Capital controls can help reduce financial contagion risks if used prudentially, such as taxes on short-term inflows. However, unilateral imposition could be harmful, so a regional guideline would help coordinate macroprudential controls.
The recent decision of the US President to adopt a protectionist policy vs. imported goods could
trigger a domino effect in the global context. The conquest by the Chinese economy of new markets such as the
African countries is part of a strategy that includes a network of alliances in order to mitigate the effects of the
policy of protectionism
The recent wave of financial innovation, particularly innovation related to the application of information and communication technologies, poses a serious challenge to the financial industry’s business model in both its banking and non-banking components. It has already revolutionised financial services and, most likely, will continue to do so in the future. If not responded to adequately and timely by regulators, it may create new risks to financial stability, as occurred before the global financial crisis of 2007-2009. However, financial innovation will not seriously affect the process of monetary policymaking and is unlikely to undermine the ability of central banks to perform their price stability mission. The recent wave of financial innovation, particularly innovation related to the application of information and communication technologies, poses a serious challenge to the financial industry’s business model in both its banking and non-banking components. It has already revolutionised financial services and, most likely, will continue to do so in the future. If not responded to adequately and timely by regulators, it may create new risks to financial stability, as occurred before the global financial crisis of 2007-2009. However, financial innovation will not seriously affect the process of monetary policymaking and is unlikely to undermine the ability of central banks to perform their price stability mission.
What: An effective policy for the development of SMEs needs to focus on identifying real constraints and determine how these could be realistically addressed. The most productive and reliable way of identifying such constraints and possible solutions is through public–private sector interaction and dialogue. UNCTAD undertook a survey of good practice and set up a project entitled “Enhancing public–private sector dialogue in LDCs”. This survey aims to distil key principles of effective dialogue that will serve as benchmarks for evaluating the practice of public–private sector dialogue and interaction. Who: Useful for anyone teaching on how to strengthen public–private sector interaction. How: Can be used as by teachers to assign students to conduct surveys using this model.
The document discusses the stalled Doha Round trade negotiations and makes the case for completing them. It notes that while global trade has increasingly liberalized unilaterally over the past decades, multilateral negotiations have stalled. This is due to developing countries now being large economies and demanding more flexibility. The document argues that completing Doha would reinforce the rules-based trading system, provide new market access worth hundreds of billions, and act as an insurance policy against future protectionism, especially through reform of agricultural subsidies. It maintains political will is needed to finalize an agreement.
This document analyzes the potential entry of H&M, a Swedish fashion brand, into the Thai market. It examines Thailand's positive economic environment, including GDP growth, an emerging middle class, and increasing tourism. The report also evaluates H&M's strengths, such as affordable pricing and product variety, and weaknesses, like a lack of understanding of Thai and Asian fashion trends. Overall, the analysis finds that Thailand represents an attractive market opportunity for H&M due to its growing economy and consumers. However, H&M will face strong competition from local and international brands already in Thailand.
SWIMMING IN THE SPAGHETTI BOWL: CHALLENGES FOR DEVELOPING COUNTRIES UNDER THE...Ira Kristina Lumban Tobing
What: This paper present the new challenges for developing countries in the context of regional integration and multilateral negotiations and the implications for their development perspectives. It focuses on the issue of preferential trade in services to study its compatibility with the GATS provisions. Who: Students and teachers interested in the new regionalism and its consequences. How: Presentation of new regionalism and opportunities for developing countries that could be used as a basis for a course.
Transatlantic Free Trade: An Agenda for Jobs, Growth and Global Trade Leadershipthinkingeurope2011
This document provides a summary of a paper on transatlantic free trade. It argues that past arguments against a transatlantic trade deal are no longer valid for two reasons. First, eliminating tariffs and reducing non-tariff barriers could generate significant economic gains for both the EU and US. Second, a transatlantic trade deal could motivate other countries to support stronger trade liberalization within the WTO. The paper examines the history of transatlantic economic cooperation and arguments that have been used against a free trade agreement in the past.
Transatlantic Free Trade: An Agenda for Jobs, Growth and Global Trade Leadershipthinkingeurope2011
The document summarizes the history of transatlantic economic cooperation since World War 2. It discusses the establishment of Bretton Woods institutions like the IMF and World Bank to promote global economic stability. It also discusses the Marshall Plan, which provided major funding to help rebuild Europe. While a transatlantic free trade agreement was never pursued in the post-war era, cooperation took place through multilateral forums like GATT and through Europe's establishment of a common market. Strategic priorities of expanding free markets and cementing the global trade system influenced the multi-track approach to cooperation between Europe and the US over subsequent decades.
Global Value Chains: Challenges, Opportunities and Implications for PolicyDr Lendy Spires
Global value chains (GVCs) have increased the interconnectedness of economies. Participation in GVCs varies by country and is determined by factors like infrastructure and human capital that governments can influence through policy. Horizontal policies promoting competitiveness like education are widely embraced, while sector-specific subsidies often fail. For countries to benefit from GVCs, policy must address challenges like reducing trade costs and improving services, as well as developing strong institutions, education, and social policies to maximize gains from GVC participation, especially in developing economies.
The document summarizes the role and functions of the Economic and Social Commission for Asia and the Pacific (ESCAP). ESCAP is the regional development arm of the United Nations and serves as the main economic and social development center for the UN in Asia and the Pacific. It has 53 member states and 9 associate member states. ESCAP provides strategic links between global and country-level programs and issues to support governments in the region. It is headquartered in Bangkok, Thailand.
Changing Paradigms of Cluster Development - FMC.pdfTheBambooLink
This document discusses the evolution of global cluster initiatives. It notes that interest in clusters as drivers of economic growth and innovation has increased significantly since the 1990s. Many international organizations like the World Bank, UNIDO, USAID, and IDB have launched cluster development programs in developing countries since the mid-1990s. The number of cluster initiatives started growing rapidly in the early 2000s. By 2003, over 500 cluster initiatives had been identified globally. India also started cluster development programs in 2002, focusing on traditional manufacturing sectors. Overall, cluster-based approaches have now become widely used by governments and organizations around the world to promote local economic development.
The role of multinational business in trade has always been very important—large firms account for the majority of international trade flows, and many if not most of these large firms will have establishments in multiple countries. These firms, obviously, are not in the development assistance business (although they may be contracted by governments to implement projects financed by Aid for Trade). This does not mean, however, that private companies do not contribute to building trade capacity in developing countries. To the contrary, many enterprises that have established operations in developing countries or that trade with developing countries make a major contribution to economic upgrading and local capacity building. Such activities are not captured by the term AFT – nor would it qualify as AFT – because the origin of the funds is private and the objective is generally to benefit/support the associated investments/operations. It nonetheless serves the same purpose. Indeed, it may have
greater success as a result of the need to demonstrate results vis-à-vis the firm’s shareholders, and can generate positive spillovers.
CII started 2014 with its annual international flagship event – The Partnership Summit – now in its 20th year since its start in 1995, which was CII’s centenary year. Over the years the Partnership Summit has become a unique platform to exchange ideas and evolve solutions to the most urgent challenges confronting the world today. The summit highlighted investment opportunities emerging from rapid poverty alleviation in India and developing countries offered ideas for how a new class of consumers can become a new dynamic for growth.
In this issue of the newsletter the focus story highlights the importance, role and opportunities for emerging Global Value Chains. In addition, the newsletter also provides an insight of some of key happenings in various multilateral institutions.
We are putting in our best efforts to make the Multilateral Newsletter more knowledgeable, informative and industry oriented. We welcome your suggestions and feedback on the newsletter and thank you for the valuable support and the time you take out while going through the newsletter.
This document contains 67 multiple choice questions with answers related to various topics including Indian history, geography, literature, sports and more. Some sample questions are:
- India's first international biosphere reserve is called what?
- The Park was created to protect its Keystone species, the Nilgiri Tahr. As a part of Western Ghats it is a part of the UNESCO world heritage site. Name the park
- Name the accomplished eldest daughter of Emperor Shah Jahan under whose instruction Chandni Chowk was constructed?
India has made progress stabilizing forest cover but still faces issues of degradation. Degradation impacts livelihoods of millions and is linked to lack of community forest rights. Key drivers are demand-supply gaps of forest products, encroachments, shifting cultivation, fires, and forest diversion. Underlying causes include population growth, poverty, and skewed development that has displaced people from village commons without compensation, putting pressure on forests. India's past forest policies prioritized exploitation over local community needs. Assessing India's readiness for REDD+ requires examining policies, tenure, cross-sector links, institutions, and technical capacity.
The document summarizes the rise and decline of the economy of Bengal. It discusses how Bengal developed a wealthy economy in the pre-colonial period due to fertile land and development of agriculture, industry and trade. Agriculture flourished with rice as the staple crop and irrigation canals. Industries like textiles (famous muslin), sugar and metal works developed. International trade brought wealth from exports like textiles, spices and pearls. However, the economy declined from the mid-18th century with the onset of British colonialism, which exploited Bengal's resources and wealth for profits.
This document provides an overview of a research project examining the political economy of the bauxite mining industry in tribal areas of central India. It outlines the research context, conceptual framework, research questions, methodology, and timeline. Specifically, the research will focus on the states of Andhra Pradesh and Orissa, comparing how their governance and policies affect outcomes for tribal communities living near bauxite mines and processing plants. Key concepts to be analyzed include land rights, the mineral industry, economic reforms, resource governance, and the potential "resource curse" faced by tribal groups from increased mining. The research aims to understand how state governments balance priorities around private investment, tribal welfare, and environmental protection regarding the rapidly expanding bauxite sector.
This document provides guidelines for planning site reconnaissance and detailed field investigations for small hydroelectric projects. It recommends establishing a survey control network and conducting topographic surveys, geological investigations, and materials searches. Topographic surveys should map reservoirs, structures, waterways, and infrastructure. Geological investigations should identify subsurface conditions through test pits, trenches, and samples. These investigations provide essential data for design and cost estimates.
This study investigated the antioxidant and antimicrobial activities of cow urine and its distillate. The cow urine and distillate were tested for their ability to scavenge free radicals using two in vitro assays and for their antimicrobial activity against several microbes. The results showed that both the cow urine and its distillate exhibited antioxidant and antimicrobial activities by scavenging free radicals and inhibiting the growth of microbes. The fresh cow urine demonstrated stronger antioxidant and antimicrobial effects compared to its distillate. These findings provide scientific support for the traditional use of cow urine as a medicine in India.
This document summarizes an article on corporate social responsibility (CSR) in India. It discusses that while CSR has been practiced for decades by some Indian companies, it remains in a developing stage overall in India. It faces issues like a lack of understanding, insufficiently trained personnel, limited coverage, and superficial promotion. The document then examines the current state of CSR in India, how companies approach it, and partnerships with NGOs. It outlines the objectives and research methodology of studying CSR issues and challenges in India. Key challenges identified include difficulties making a business case for CSR and integrating it into company values and practices. The document concludes by stating that CSR is an opportunity rather than a peripheral issue for businesses in India.
This document discusses the identification of the Rigvedic river Raså. It considers various scholarly views that have identified Raså with rivers as far apart as the Tigris, Narmada, and others. However, the author argues that none of these identifications are supported by clear evidence.
The author then analyzes clues from Rigvedic hymns to determine the location of Raså. Based on descriptions of the terrain, flooding patterns, and presence of horses, the author concludes that Raså can best be identified with the Rakshån river in Balochistan. The author also examines evidence for the presence of Rigvedic tribes like the Pañis in the region, supporting this identification of Ras
This document summarizes a study assessing the water quality index of the Ramganga River in western Uttar Pradesh, India using a computer program. Water samples were taken from 6 stations along the river from 2005-2008 and tested for 8 physicochemical parameters. A rating scale from 0-100 was used to classify the pollution level from each parameter at each station. The water quality index was calculated based on these ratings to determine the overall pollution level. Upstream stations from SS1-SS4 had slight to permissible pollution while downstream stations SS5-SS6 were severely to moderately polluted due to effluent from nearby sugar and electroplating industries. A computer program was created to rapidly calculate the water quality index and classify
This document summarizes the early history of Chinese settlement in Batavia (now Jakarta) in the 17th century. It discusses how the Dutch East India Company, led by Governor-General Jan Pieterszoon Coen, forcibly brought Chinese men, women and children to Batavia to populate the city and support the Company's economic activities. The Chinese played an important role in Batavia's development as merchants, farmers and craftspeople. A system of ethnic community leadership, with a headman called a "captain," was implemented to govern the growing Chinese population. Over time Batavia became an important center of Chinese settlement in the Dutch East Indies.
01. india's river linking project state of the debate- shah et alRavi Naid Gorle
This document discusses India's proposed inter-linking of rivers project in three paragraphs:
1) It provides background on the long-discussed idea of linking water-surplus Himalayan rivers with water-scarce regions in western and peninsular India. The project is now being debated in detail as a mega-project, but faces opposition over environmental and social costs.
2) It then outlines the history of proposals to link India's rivers dating back to the 19th century. Most recently, the Supreme Court ordered the project be completed by 2016, though the timeline was impossible. The project now has uncertain support under the new government.
3) It concludes by noting that while India has hesitated
This document contains a general knowledge capsule with 70 multiple choice questions related to geography, science, history and miscellaneous topics. The questions cover topics such as Indian states and their boundaries, physical features of India like rivers and mountain ranges, natural resources and industries, environmental issues, world geography, and basic science concepts.
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This document provides an overview and editorial for The Indigenous World 2010 publication. It summarizes some of the key developments and issues impacting indigenous peoples in 2009, as reported in the publication's country reports. These include Greenland gaining greater autonomy from Denmark and Bolivia approving a new constitution recognizing indigenous rights. However, it also notes ongoing threats to indigenous lands, rights, and cultures from large-scale development projects, climate change impacts, criminalization of protests, and failure to implement laws protecting indigenous peoples. The editorial frames these as ongoing struggles between indigenous self-determination and development aggression. It highlights the importance of mechanisms like the UNDRIP and ILO 169 in advocating for indigenous rights.
This document is the Reserve Bank of India's annual report on trends and progress in banking in India for the year ending June 30, 2011. Some key points:
- It provides an overview of developments in the Indian banking sector as well as global banking trends.
- It discusses the policy environment in India, including monetary policy, credit delivery, financial inclusion, and prudential regulatory policies.
- It analyzes the operations and performance of commercial banks in India, including their balance sheets, financial results, asset quality, lending patterns, and technological developments.
- It also covers cooperative banking and non-banking financial institutions.
- The report is submitted to the Central Government of India as required
The document discusses the Indus script and proposes that it can be deciphered by identifying the underlying language as Dravidian. It provides background on the Indus civilization and summarizes previous unsuccessful attempts to decipher the script. It then examines evidence suggesting the script encodes a Dravidian language, including loanwords in Vedic Sanskrit, shared phonological features between Indo-Aryan and Dravidian, and the geographic distribution of Dravidian languages. The document analyzes the evolution of the Indus script and argues it represents a fully developed writing system, not just non-linguistic symbols. It concludes by proposing a Dravidian solution could enable decipherment of the long unsolved Indus script
(055) river flood plains some observations on their formationRavi Naid Gorle
The document discusses the formation of river flood plains through observations of numerous case studies. It finds that despite expectations, the frequency of flooding of flood plains is remarkably uniform across different rivers and regions, with overbank flooding occurring nearly every 1-2 years on average. This suggests overbank deposition plays only a minor role in flood plain formation, as even large floods deposit only thin layers. Instead, it is proposed that lateral migration of river channels within valleys is the primary process, with flood plains largely consisting of channel deposits from past channel locations. The uniform flooding frequency indicates flood plains are maintained at a consistent elevation relative to river levels through this process rather than aggrading over time from successive overbank deposits.
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Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
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BriansClub.cm, a famous platform on the dark web, has become one of the most infamous carding marketplaces, specializing in the sale of stolen credit card data.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
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1. ADBI Working Paper Series
The Emerging “Post-Doha” Agenda
and the New Regionalism in the
Asia-Pacific
Michael G. Plummer
No. 384
October 2012
Asian Development Bank Institute
3. ADBI Working Paper 384
Plummer
Abstract
This paper considers emerging commercial policy challenges facing the Asia-Pacific region in
light of the impasse reached at the Eighth World Trade Organization (WTO) Ministerial Meeting
in December 2011. It underscores that, while marginal liberalization of trade barriers under the
Doha Development Agenda may not be forthcoming in the short- or even medium-term, the
WTO has been successful in erecting a rules-based system of global governance and continues
to be extremely important to the future health of the international trading system. Nevertheless,
one can expect the current trend toward bilateral and regional free-trade areas (FTAs) will
continue, particularly since it is easier to make progress toward “deep integration” in a smaller
group of like-minded countries than in the context of the general WTO membership. This paper
considers how the FTA trend is developing in the Asia-Pacific region and what its prospects are
in the future. It stresses that regional—as opposed to bilateral—arrangements will be essential
to the region for economic (e.g., supporting regional production networks) as well as diplomaticpolitical goals. This “new regionalism,” which has been supported by Asia-Pacific Economic
Cooperation (APEC), will lead to significant reductions in the costs associated with bilateral
FTAs (e.g., lower costs associated with rules of origin, improved utilization rates) and has many
advantages over “noodle-bowl” bilateralism.
JEL Classification: F13, F15
In this paper, “$” refers to US dollars.
4. ADBI Working Paper 384
Plummer
Contents
1.
Introduction ..................................................................................................................... 3
2.
Multilateralism after the Eighth WTO Ministerial Conference .......................................... 3
3.
On Building Blocs and Stumbling Blocs .......................................................................... 6
4.
The New Regionalism in the Asia-Pacific.......................................................................13
5.
Conclusions ...................................................................................................................15
References ...............................................................................................................................17
5. ADBI Working Paper 384
Plummer
1. INTRODUCTION
As of 15 January 2012, the WTO reports that, counting goods and services separately, it has
received over 500 notifications of regional trading arrangements (RTAs, defined by the WTO to
be a reciprocal trading agreement between two or more countries), with 319 in force. 1 This
number is up from 300 at the end of 2005 and 130 at the beginning of 1995 (Plummer 2007).
Asia has been a major participant in this rapid increase in RTAs; in fact, apart from the ASEAN
Free-Trade Area (AFTA) in 1992, no Asian country had a significant RTA in place prior to 2000,
whereas as of January 2012 there were 99 Asia-related RTAs signed and in effect and another
151 at various stages of negotiation. 2 Many of these arrangements are intra-regional; Appendix
Table 1 gives an inventory of these arrangements for the East Asian Summit (ASEAN+8)
economies. Clearly, Asia has embraced regionalism in a big way.
At the multilateral level, however, the situation is mixed. On the one hand, the WTO system itself
is functioning well, with the rule-based system being respected, a much-improved dispute
settlement mechanism (over the GATT) in place, and rising membership (with Russia likely to
join this year). The WTO continues to be the pre-eminent institution of global government of
trade. On the other hand, the multilateral liberalization process appears to be stalled, with the
Doha Development Agenda (DDA) negotiations and attempts at other deliverables (e.g., dutyfree/quota-free market access for least-developed economies; elimination of “nuisance tariffs”;
an agreement on trade facilitation) generally fruitless at the 8th WTO Ministerial Meeting in
December 2011. Moreover, the WTO agreement itself has been criticized for not including (or
covering insufficiently) a number of trade-related issues that, some argue, need to be addressed
at the multilateral level in the 21st Century, e.g., export restrictions, competition policy
(“competitive neutrality”), environmental-related measures (e.g., “environmental” dumping), and,
of course, issues related to exchange-rate “manipulation.”
On the positive side, perhaps in 2013 or later there will be a new impetus to multilateral
liberalization, either under the form of a rejuvenated DDA or in other ways, but much will have to
change (and some proposals could be problematic). We discuss these problems in Section 2.
Nevertheless, regionalism is the most important force in international commercial policy today
and it will likely continue to be so in the foreseeable future. Hence, we consider whether
regionalism is an inherent threat to the multilateral system (Section 3) and anticipate what we
believe will be the “new regionalism” in the Asia-Pacific (Section 4). Section 5 offers some
concluding remarks.
2. MULTILATERALISM AFTER THE EIGHTH WTO
MINISTERIAL CONFERENCE
Relative to previous negotiating rounds, the DDA has been characterized by far greater
participation of developing countries, which have raised their expectations as to what they hope
to receive from developed countries in terms of liberalization of certain labor-intensive, but
especially agricultural, goods. 3 Developed countries, on the other hand, pressed, inter alia, for
deeper cuts in industrial tariffs in developing economies. This has given the impression of
1
2
3
WTO website, www.wto.org, accessed 19 March 2012.
www.aric.adb.org, accessed 18 July 2012.
Part of this section draws from Plummer (2012).
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“North-South” tension at the DDA and has been blamed for the 2011 impasse, an impasse that
will continue at least until mid-2013.
No doubt, the differences between the negotiating stances of the “North” and the “South” were in
evidence throughout the entire DDA negotiations. This is, perhaps, quite predictable: negotiators
focus on improving market access and facilitating the development of comparative advantage
industries. For the North, this means concentrating on higher-value added manufactures;
financial and other services; protection of intellectual property; and investment and trade
facilitation, which facilitate foreign direct investment (FDI) flows. The South, on the other hand,
naturally focuses on labor-intensive manufactures and resists liberalization of its most sensitive
areas, as well as behind-the-border measures that may infringe on national sovereignty.
However, the situation is far more complex: negotiating stances are not completely dictated by
North-South differences. Developing countries have become more active at Doha because most
have now embraced an outward-oriented development strategy and depend on the international
marketplace to enhance growth and development. In the past, these countries were not active at
GATT rounds, as they generally chose to “free-ride” on commitments between developed
countries from which they also received MFN benefits. The cost of this approach became
evident in time: the sectors that were being liberalized were of principal interest to developed,
rather than developing, countries. In order to include comparative-advantage sectors of the
developing world, a pro-active stance at the WTO was necessary, and these economies did
have an overlap of interests vis à vis developed economies.
Still, the world is changing rapidly, and it is too simplistic to evaluate trends in commercial policy
based on this traditional North-South divide. The share of emerging markets in global economic
activity has been rising significantly; for example, Asian economies constituted 28% of the global
economy in 2010, up from 8% in 1980, and this share is projected to rise to 40% in 2030 and
52% in 2050 (ADB 2011). Other key emerging markets, such as Brazil, Russia, and South
Africa, have also been experiencing a much greater presence in global markets. Whereas in the
past GATT rounds were dominated by Northern initiative without a large role for the South, this is
certainly no longer the case. In this sense, one might say that the impasse at the DDA has been
a sign of maturity of the organization, with a more symmetric distribution of power… and
responsibility.
In fact, there are also tensions across emerging market economies. Trade across the “BRICS”
(Brazil, Russia, India, the Republic of China [PRC], and South Africa) has been rising
considerably and productive and export structures between most of them (in particular, Brazil,
India, and the PRC) are far more similar than, say, those of the key developed countries at the
negotiating table at the DDA. Ceteris paribus, we would expect that political interests in these
economies would be at least as sensitive (but, most likely, more sensitive) to competition due to
liberalization under the DDA from fellow BRICS than from developed economies. A textileproducing country fears competition from another textile-producing country more than from a
country that produces automobiles. Arguably, trade patterns are reinforcing these sensitivities.
For example, the PRC’s trade with other developing economies has been growing by leaps and
bounds in recent years; indeed, the share of its trade with non-Asian developing economies is
the most dynamic in its trade portfolio (ADB 2012). This trade tends to be dominated by the
PRC’s exporting manufactures in exchange for natural-resource-related goods. The reaction in
other BRICS has been negative, with some fearing that this could be a new manifestation of
“dependencia,” which in turn has given wind to the sails of some domestic protectionist interests.
Coupled with the fact that the BRICS are cast as leaders of the developing world and standing
up to developed economies may be perceived as a manifestation of leadership credentials, the
DDA may have been facing more than just headwinds from economic issues.
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If indeed these political-economy issues are important determinants of the emerging market
negotiating stance, we might have to wait a long time for the DDA (or any other singleundertaking under the WTO) to be completed. 4 Perhaps recognizing this, policymakers have
been exploring opportunities outside the single-undertaking, for example, in the area of
“plurilaterals.”
Currently, there are two prominent, quite successful plurilaterals under the auspices of the WTO:
the Information Technology Agreement (ITA) and the Government Procurement Agreement
(GPA). 5 The ITA has 70 participating parties that constitute 97% of the pooled markets of WTO
membership in included products. The ITA focuses exclusively on tariffs, which are bound at
zero, and benefits are applied on an MFN basis. The GPA includes 15 economies (taking the
European Union [EU] as only one member) and its benefits are not applied on an most-favored
nation (MFN) basis but rather are only accorded to its membership, though any WTO member
has a right to join (there are currently 22 observes, with nine currently negotiating accession,
including the PRC).
As a single-undertaking has proven so difficult, it is only natural that policymakers are
considering less ambitious approaches by focusing on sectors. To the extent that these accords
grant MFN to all parties, there is no reason to believe that they could potentially damage the
multilateral system. I note potentially because, arguably, an agreement like the GPA does not
create distortions related to “trade diversion”; prior to the agreement, preferences generally were
given to domestic producers and, hence, the GPA increased competition between domestic
firms and foreign (GPA-member) firms, rather than across foreign competitors (who were
previously discriminated against anyway). However, to the extent that such a plurilateral could
lead to new discrimination across members, it could create some serious problems.
To begin, if a plurilateral does not include substantially all goods (as required for the Article XXIV
or the GATS Article V exceptions), it would violate Article I of the WTO. For example, there has
been some talk of proposing an “ITA II,” which would expand significantly product coverage, and
to make it reciprocal without requiring the 90% minimum as required with the first ITA
agreement. If the developed economies were to table an expansive list of additional products
that would be considered excessive from the viewpoint of India and the PRC, a reciprocal ITA II
would simply exclude them, with potential for trade diversion and arguably a violation of MFN.
Some might note that they could join later if they wished, but an exception under Article XXIV
does not allow for this. Moreover, these kinds of single-sector accords could have significant
negative implications for effective rates of protection.
Another plurilateral approach would be to require reciprocity but meet the “substantially all
goods” requirement. Such an idea was tabled at the Eighth Ministerial in the area of services,
where the GATS Article V would also require that most services sectors be included in any
accord. In theory, this would be a very interesting approach; in practice, it could create problems.
First, “substantially all goods” has never been appropriately defined. The GATT saw, for
example, a number of FTAs in manufactures alone (arguably not “substantially all goods”) and
even bilateral free trade in one sector between the US (US) and Canada: the 1965 agreement
on auto parts. A limited set of services included in such an agreement would have the potential
for negative, “second-best” ramifications and reflect poorly on the WTO itself. Second, who will
join such an agreement? If it is only Organisation for Economic Co-operation and Development
(OECD) countries, it could exacerbate the impression of a North-South divide in the WTO.
Currently, the momentum for a services plurilateral is coming from the 18 “Really Good Friends
4
5
Hufbauer and Schott (2012) are also skeptical of future progress at the DDA and propose moving away from a
single-undertaking toward a “Grand Bargain” as a more effective way of moving the process forward.
The third WTO plurilateral relates to trade in civil aircraft.
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of Services,” comprised mostly of OECD economies and including none from the BRIC group
(Geneva Watch 2012).
In sum, the DDA will likely be stalled for some time, and more modest approaches to multilateral
liberalization will themselves probably be limited (and could, and least in principle, create
worrying precedents). As the regionalism trend emerging in full force in the early 2000s side-byside with DDA negotiations, we can expect that it will be the only game in town for at least the
next few years (and, most likely, longer).
3. ON BUILDING BLOCS AND STUMBLING BLOCS
Disillusionment with progress at the DDA may be one reason for the proliferation of regional
agreements in Asia and the rest of the world. The ambitious agenda of Doha, from both
developed- and developing-country viewpoints, could be more easily managed bilaterally or
between a small group of countries than in an organization of 157 highly-divergent economies.
Hence, it is no mystery as to why many of the new regional agreements are between developed
and developing countries: what is needed to integrate global markets further, from non-tariff
barriers to behind-the-border issues, may be too much to handle at the WTO.
The WTO is cognizant of the regionalism trend and understands the problems that it could
potentially entail for the global trading system (See, for example, WTO 2011). Indeed, the
challenges of regionalism to the WTO are many, but two in particular stand out. First, the
General Agreement on Tariffs and Trade (GATT)/WTO was created with MFN treatment as its
over-riding principle, and Article XXIV was to be a conditional exception to this rule. With so
many accords in place and every major economy participating in at least one FTA (and most in
many), what happens when the exception becomes the rule? How valid is the coveted MFN, a
birthright of WTO membership, when regional trading arrangements erode it and, in essence,
force countries into regional trading arrangements in order to retain MFN status? Second, as we
will argue below, regionalism is not necessarily in conflict with multilateralism, subject to the
principle of openness and the minimization of the inefficiencies and potential discrimination
inherent in regional agreements.
In this section, I will first discuss some of the problems associated with the “regionalism debate,”
beginning with some introductory observations and followed by a summary of the “building blocs
versus stumbling blocs” debate itself. 6
a. Introductory Comments Regarding Regionalism versus Multilateralism
It is important to note first of all that, while WTO accords do impose a certain symmetry, they do
not guarantee it. For example, the WTO sets out rules of behavior in terms of anti-dumping that
are no doubt superior to a system void of rules. But they do not harmonize all anti-dumping
practices. Member-states continue to have a great deal of flexibility in this regard (and probably
always will have, at least in the context of the WTO). Moreover, the lack of across-the-board
inclusion of sectors and asymmetric liberalization within the context of GATT/WTO liberalization
could create distortions that exacerbate effective rates of protection; that is, while regionalism
discriminates across countries, the GATT/WTO discriminates across sectors, and to the extent
that this is the case, both are second-best. The existence of a WTO Valuation Agreement on
customs is extremely useful but there continues to be considerable variation in terms of adopted
practices across WTO member-states. The same can generally be true of “Singapore issue”6
Some of this discussion is adapted from Plummer (2008).
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related topics, intellectual property right (IPR) protection, and the like, in which the WTO often
has little or incomplete jurisdiction. A salient disadvantage of the multilateral approach under the
WTO is that harmonization of such rules and policies has proven to be extremely difficult, and
progress highly limited, due to the diversity of its membership, as well as disagreements as to
how comprehensive the mission of the WTO should be. Given that the organization of the
international economy (e.g., via production networks) has become more complicated and
reaches ever-deeper into the very fabric of domestic policy and legislation, behind-the-border
issues are becoming increasingly important. These, though, are even more difficult to include in
negotiations among a membership with widely-diverging interests and positions regarding an
outward-oriented development strategy.
The usefulness of regional agreements—and certainly one reason for their popularity (see World
Bank 2005, Kreinin and Plummer 2002, Frankel 1998)—lies in their ability to drive integration
and cooperation in areas that have hitherto been neglected by the WTO, e.g., in terms of tariff,
non-tariff and behind-the-border measures. Thus, while it is true that a multilateral approach
would dominate a bilateral/regional strategy if all the same measures are included and
harmonized/liberalized to the same extent, it is not a dominant strategy once we relax this
(unrealistic) assumption of symmetry in liberalization and coverage.
In fact, critiques of FTAs relative to free trade can easily fall into “straw man” analysis. For
example, the rules of origin constraints under North American Free Trade Agreement (NAFTA)
in automobiles (62.5%) and certain textile products (effectively 100%) do not fit the criteria for
“open regionalism” under any definition of this term. However, these are probably among the
most obvious out of relatively few such divergencies in what is in reality a liberal agreement.
Besides, for NAFTA, the effective benchmark should be the status quo, not free trade. Would
auto and textile imports to the US have been much less restrictive without NAFTA? Not
necessarily. In fact, certainly trade diversion does have costs, but we cannot say that NAFTA
closed those markets, since failure to meet NAFTA rules of origin meant recourse to the status
quo. The status quo did not become more protective; in textiles and apparel, the US market has
become more open with the expiration of global import quotas on January 1 2005 (under
Uruguay Round commitments). Again, Mexican textiles receive preferential treatment and,
hence, trade diversion is a cost to be borne by non-partners and US consumers, but there still is
an associated trade creation effect that would have not occurred had there been no NAFTA. Net
gains have been estimated to have been positive. 7
Many American economists supported NAFTA not for general support for regionalism per se or
their belief that it would have great effects on allocative efficiency in North America through the
liberalization of tariff and non-tariff barriers, which were, after all, low in the aggregate. 8 Effects
on the US and, especially, Canada, were estimated to be positive but small. Rather, it was
supported in the main because it would lock in the Mexican economic reforms leading up to
NAFTA and would set the stage for further liberalization. Given the history of economic volatility
in Mexico, NAFTA as a “policy anchor” was deemed to be extremely useful. Once NAFTA began
to be implemented in full force (i.e., after the Mexican crisis in December 1994, which had little or
nothing to do with NAFTA directly), the net effect on macro performance in Mexico has been
very positive (Kose and Rebucci 2005). In 2005, the US government gave a high priority to an
FTA with Central America (“CAFTA”) in hopes that it would have the same stabilizing effect. 9
7
8
9
See, for example, Hufbauer and Schott (2005).
These were higher in the case of Mexico, but as Mexico is a small economy compared to the US and Canada, the
net effects could not be large.
It is interesting to note that CAFTA was passed in the US only after personal lobbying by the President himself, and
then the pact passed by only a two-vote margin in the House of Representatives. But Congressional opposition was
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And while the percentage of total Mexican trade has risen to somewhat over three-fourths (from
two-thirds) in the wake of NAFTA, a result of both trade creation and diversion, one cannot say
that Mexico has been “captive” in NAFTA. In fact, Mexico now has negotiated some 39 FTAs.
Moreover, openness of the Mexican economy has allowed non-partner countries to benefit; the
financial sector in Mexico, for example, is characterized by a considerable European presence.
Again, this is not to argue that restrictive rules of origin and other inward-looking clauses in
regional trading arrangements do not constitute a problematic aspect of RTAs. A consistent,
liberal, across-the-board rules of origin policy is the least distortionary in a second-best world
(Plummer 2007). But we should not exaggerate its absolute importance in the regionalism
debate.
Moreover, time and depth matter. Many protagonists of a purely multilateral approach to
economic cooperation tend to present arguments without a well-defined time horizon. But time is
important when considering the present discounted value to national welfare of a regional trading
accord compared to multilateral free trade. A heuristic example may help underscore this point.
Suppose Indonesia has an option to create an FTA with the US, but its leaders know that this will
have some costs in terms of trade diversion. The “first-best” (global free trade) policy, its leaders
might reckon, would ultimately be the best deal for Indonesia, as non-discriminatory free trade
would have no trade diversion and could maximize trade creation. But since Indonesia is unable
to benefit from global free-trade (no such option exists at present), timing becomes an essential
factor in the policy decision. If global free trade were an option in the very short term, then,
ceteris paribus, free trade would be better than the deal with the US. But what if the FTA with the
US were possible today, and yet global free trade would take 5 more years? Which would be
better? It would depend on what the Indonesia-US deal would look like (relative to the global
deal), but nevertheless, it could be that free trade would still be worth the wait. But what if free
trade were to take more like 20, 30, or 40 years? After all, the GATT/WTO has existed for over a
half-century, and global free trade is nowhere in sight. Of course, this type of analysis will be a
function of the type of regional accord, in particular if it is inward-looking or outward-looking. If it
were the former, the deal with the US could end up being very much to the detriment of
Indonesia. As we shall see in terms of the “building bloc versus stumbling bloc” debate, the type
of agreement is of the essence. But it would also be important to know what the multilateral deal
would be. If a regional accord entailed far more reforms vis a vis market-friendly, efficient
policies at macro and micro levels whereas global free trade meant merely the abolition of tariff
barriers, the former could still potentially be as good or better than the latter.
Herein lies the attraction and, in many ways, advantage that regionalism holds over
multilateralism: it allows like-minded countries to address far more issues and in a shorter period
of time. By choosing one or several like-minded partners, countries are able to make more
progress in terms of deep integration than they could in the extremely-diverse WTO context.
Rising interest in regionalism on the part of OECD countries that traditionally had shunned them
(the US, Japan, the Republic of Korea) derives from their desire to address these many issues
and their understanding that they cannot accomplish them in the context of the WTO, or at least
not in the short/medium run. A successful conclusion to DDA would, perhaps, have had an
impact on the momentum behind the regionalism movement, but this is not guaranteed: the
incentives for new bilateral/plurilateral accords, as well as for deepening existing ones, would
remain. Besides, the DDA is stalled and, as noted above, may well be so for some time in the
future.
What is guaranteed through successful multilateralism is a reduction in the potential negative
effects of these regional agreements and overall less risk to the integrity of the international
not due to a dislike of regionalism per se but rather a dislike of trade liberalization, that is, it was generally opposed
on traditional protectionist grounds.
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trading system. Moreover, to the extent that a multilateral accord can, indeed, make Article
XXIV more effective in ensuring that these new regional agreements will be outward-looking and
consistent with a WTO approach, the risks associated with regionalism could be significantly
mitigated (Plummer 2007). Economists should continue to support a “deep” DDA.
Hence, the obvious question emerges as to how regional agreements themselves can work in
favor of global free trade. The traditional approach is to view it from the “building blocs versus
stumbling blocs” lens, which we do below.
b. Building Blocs versus Stumbling Blocs: Theoretical Considerations
Does regionalism support unilateral/multilateral reform goals, or does the discrimination inherent
in a trade bloc lead to a "second best" outcome at best, or an inward-looking one at worst? This
is the essence of the “building blocs” versus “stumbling blocs” debate. The literature would
suggest that several possible negative policy consequences could emerge from an FTA, i.e.,
inherent “stumbling bloc” tendencies, while other tendencies would be consistent with multilateral
goals and market-friendly domestic liberalization and could actually facilitate multilateral
liberalization, that is, “building blocs.” Briefly, these would include 10:
i. Stumbling Blocs:
1. Maximizing terms of trade. Regional integration, particularly customs unions, increases the
size of an economic zone and, as such, increases market power. The potential benefits of
exploiting such an advantage by imposing an “optimal tariff” (i.e., maximizing the difference
between the terms of trade gains from a tariff regime against its costs in terms of efficiency) are
familiar from the international trade literature. Moreover, FTAs and customs unions, by “virtue” of
the trade diversion effect, improve their terms of trade relative to the rest of the world; the larger
the grouping, the larger the potential improvement in the terms of trade.
In reality, the first effect is probably not particularly relevant, as even tariff regimes in the context
of a customs union are not erected according to optimum tariff rules. 11 Moreover, in the cases of
both customs unions and FTAs, changes in the external tariff regime cannot on average be more
protective than the pre-integration status quo, according to Article XXIV. This does not mean that
there will not be any potentially negative sectoral effects, but in this case GATT/WTO members
are able to sue for compensation. The most famous case in this regard is, “Turkey: Restrictions
on Imports of Textile Products,” in which India initiated a GATT panel against Turkey in the wake
of the harmonization of its external tariff with the EU when it formed a customs union in
manufactures (Herzstein and Whitlock 2005). 12 Of course, this effect would be even less
important with improved rules within the context of Article XXIV.
With respect to the terms of trade effect, since trade diversion undeniably results from
preferential trading arrangements, it is certainly a concern. But trade diversion is actually a one10
11
12
See the classic piece by Frankel (1997), from which some of these topics are adopted.
Nor are they at the country-level. While the optimum tariff argument is one of the three classic economic arguments
in favor of protection (the others being the infant-industry argument and strategic trade policy), it is well recognized
to be a theoretical argument. Tariffs are generally implemented for political and political-economy-related reasons,
not as a means of trying to extract terms of trade gains.
The Turkey case may be the most famous but there are others. For example, while Spain’s external tariff regime
became more liberal after it joined the EC, the country did raise protection on agriculture imports in order to
harmonize its policies with the EC’s Common Agricultural Policy. The US was able to extract compensation from the
EC in the feed-grains sectors in compensation for the associated trade diversion.
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time price effect and, hence, static in nature. In fact, it is the static cost of preferential trading
accords.
2. Manipulation of the contents and scope of the agreement by special interests. This concern
obviously also manifests itself in the context of domestic policy formation. Deardorff (2004)
stresses that this is especially a problem in the context of developed-developing country
accords, in which the former obviously have the upper hand, as special interests tend to be far
better organized and funded. The lack of rigor and coverage in Article XXIV makes this a
particular problem, as the flexibility allowed in an FTA tends to give considerable liberty to
special-interest influences. Of course, this could also have a positive effect: special interest
groups in developed countries no doubt push for better IPR protection, competition policy,
treatment of FDI, and better trade and investment facilitation, but these arguably could have
important positive effects on efficiency and policy formation in developing countries. 13
3. Waste of scarce negotiating resources. Particularly (but not exclusively) in the case of
developing countries, the scarcity of well-trained and well-experienced experts on trade
negotiations imply that the opportunity cost of resources devoted to regional agreements is the
allocation of less talent to multilateral deals. Critics of regionalism suggest that such a capacity
constraint can only be detrimental to multilateral liberalization, and even well-developed
domestic policy reform. For example, after Viet Nam joined the Association for Southeast Asian
Nations (ASEAN) in 1995, it worked not only to enter into AFTA (due for completion in 2006) but
also to implement a number of other accords, including an extensive Bilateral Trade Agreement
(BTA) with the US in 2001. On top of that, it was working on ASEAN+3 initiatives and,
eventually, the AEC. Given its human-capital capacity constraints, this could very well have
delayed its drive to join the WTO.
Or, perhaps, not. A counter-argument would be that Viet Nam has been able to ready its
economy for the WTO through the outward-oriented policies adopted because of its membership
in ASEAN, and the BTA itself was essentially a means of preparing Viet Nam for WTO entry,
including legal and administrative reforms that would in any event be necessary. The agreement
is replete with references to WTO protocols and WTO-consistent reforms, from services
liberalization to TRIPs-Plus. These negotiations have also sharpened the expertise of
vietnamese negotiating authorities. The US also allocated a relatively large project (the “STAR
Project”) to assist Viet Nam in reforming its legal system to be more compatible with international
norms, as well as train officials.
ii. Building Blocs.
1. Lock in policy change. We have referred to this effect fairly frequently in previous sections,
using in particular the case of Mexico in NAFTA. But there are many others, including the case
of Viet Nam, mentioned above, which has been able to use regional integration as a blueprint for
market-friendly reform to become more competitive in the international marketplace. Without
ASEAN (and eventually the BTA), one can easily argue that Viet Nam would have not made as
much progress (and its joining the WTO would no doubt have been further delayed).
2. Improve negotiating power for smaller units. Traditionally, the possibility of small countries
joining together and working as one cohesive unit in trade negotiations has always been
recognized: even Harry Johnson, who was an avid critic of regionalism, acknowledged this
potential benefit. This would apply both to smaller countries as well as larger units, such as the
EU. Hence, in theory, ASEAN should be able to have much more power in influencing WTO
13
It should be noted that IPR is probably the most controversial in term of the ultimate effect on economic efficiency.
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negotiations, or bilateral/regional/plurilateral deals in general, as a group: the whole could be
greater than the sum of its parts.
The EU has certainly been effective in this regard from its beginning as the European Economic
Community. But it began as a customs union, not merely an FTA, in which national commercial
policy vis a vis third countries can differ (often substantially). ASEAN, however, has never been
very effective at projecting its power as a unified group, even after AFTA. The region is just too
diverse at this point and the interests of individual countries diverge too much (perhaps this will
change with the AEC). Thus, we could probably conclude that this potential “building bloc” is
theoretically a possibility, but in practice can be somewhat difficult, being a function of the type of
accord (FTA or customs union) and the interests of the component states.
3. A dynamic weeding process as a first step toward free trade. It could very well be that the
process of structural adjustment unleashed by a regional trading arrangement through trade
creation could, in effect, make multilateral accords easier. As the weakest (and, hence, more
resistant to any international competition) are weeded out due to, say, an FTA, the stock of
opposition to trade falls in importance, thereby making multilateral initiatives easier.
Perhaps an example would illustrate the point. Suppose that the trade policies of a country (let’s
call it “home”) are determined by domestic firms, and “home” trades with two other countries:
“partner” (i.e., the country that would ultimately form an FTA with “home”) and “rest of world.”
Furthermore, assume that, in autarky, there are six industries, with linear cost structures of the
firms in the home country being such that two are globally competitive (goods A and B), two
(goods C and D) are competitive only regionally (in a potential FTA with “partner”), and two
would never be competitive with trade (goods E and F). Now, assume that the “home”
government puts to vote whether or not the country should move to free trade. Firms producing
A and B will vote yes, as they would benefit from a larger market, but the other four firms would
vote against it, as they would be put out of business. We remain in an autarkic equilibrium. But
suppose now that the home country votes on whether or not it should have an FTA with
“partner.” Goods A, B, C and D will vote in favor, and E and F against. The FTA would pass.
Eventually, competition from the partner country will force out production of goods E and F in the
home country (trade creation), and there will be no trade diversion (as we began in autarky). The
remaining firms in the home country will, therefore, eventually only produce A, B, C and D. Next,
assume that the home country votes once again on whether or not it should have free trade. The
votes will now be two in favor (A and B) and two against (C and D). Assuming that consumers
have even a little say would be sufficient to usher in free trade, and this would be due to the FTA
“stepping stone” process.
4. Competitive liberalization to attract international capital, as well as a positive “threat.”
Regional integration can be used as a means of rendering the component economies more
efficient, competitive, and market friendly. While a grouping may or may not adopt global “best
practices” in regulatory, legal, and other issues, it can reduce the stock of divergencies across
countries (thereby making it easier to integrate globally). By reducing transaction costs across
countries, an FTA can enhance its attractiveness to multinationals. As policy externalities
become increasingly important as an FTA “deepens,” the incentive to internalize them through
monitoring, sharing information, and closer cooperation increases. Because trade and financial
links are becoming increasingly appreciated, countries within an FTA soon find it useful—or even
necessary—to further financial and macroeconomic cooperation.
It may also be true that regional agreements can be used as implicit and explicit “threats,”
particularly since FTAs seem to have a tendency to grow over time. An obvious example was the
boost that President Clinton gave to Asia-Pacific Economic Cooperation (APEC) in 1993, when it
invited leaders to Blake Island, Washington, for the first APEC Heads of State Summit.
Strengthening the organization was supported at Blake Island, and the political will to move
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forward on economic cooperation, especially in trade, was obviously in evidence (in the following
year, in Indonesia, this would manifest itself in the “Bogor Vision” goals of open trade and
investment by 2010 for developed economies and 2020 for developing economies). Prior to
Blake Island, the Uruguay Round had failed to be approved twice (in 2000 and again in 2002)
essentially because the EU and the US, backed by the Cairns Group, could not reach an
agreement on agriculture. After the Blake Island Summit, the Europeans decided to sign the
agreement. Many experts have stressed that Clinton deliberately used APEC as a “threat” to
Europe, i.e., if the Uruguay Round didn’t go through, the US was perfectly willing to move
forward on free trade with Asia. Rather than face trade diversion in the world’s most rapidly
growing market by far, the EU opted for the GATT.
Each of these arguments has theoretical merits. But in practice, the inclination of the regional
accord tends to be extremely important. Clearly, if the group is being formed as a means of
enhancing inward-looking development strategies or as a way of isolating the region from global
competition, this initial policy thrust would set in motion many of the problems discussed above.
In fact, this approach has led to the downfall of many regional trading agreements in the past,
especially in Latin American (e.g., the Latin American Free Trade Area). 14 Yet, if outward-looking
economies form a regional grouping, it is likely that regionalism will serve to promote the goals of
domestic policy reform and multilateral liberalization. This is due to at least four factors: (1) it is
unlikely that a country wishing to promote outward-looking policies, including extensive unilateral
liberalization and active participation at the WTO, would contradict this stance in favor of a
regionally-closed system; (2) reductions in trade barriers within a preferential trading
arrangement make it more attractive for a country to reduce external barriers, in effect "MFNizing" regional concessions, because the most important cost of regionalism is trade diversion
and lower external barriers will reduce associated costs; (3) the “weeding out” of least
competitive industries (discussed above) and making the political economy of trade liberalization
more favorable over time seems to have been important empirically 15; and (4) the membership of
RTAs tends to expand and to become more diverse over time, thereby reducing regional sources of
support for protectionism in a particular country and industry, as well as reducing the overall
potential for trade diversion. One might add to this the list of non-traditional benefits for developing
countries in regional trading agreements such as enhanced macroeconomic stability via
cooperation, greater FDI inflows and attendant technology transfer, structural policy change and
reform, and state-of-the-art harmonization. The lion’s share of empirical estimates of the economic
effects of regional trading agreements in East Asia, for example, using either CGE modeling or
econometric methods, reveal net trade creation.
In sum, while the risks of regionalism are real and, as with any real-world second-best policies,
costs exist, it would appear that what is driving the regionalism movement since the early 2000s,
particularly in Asia, is based on an outward-looking approach to integration and that the implications
have been positive for the region. AFTA and other expressions of ASEAN integration are exemplary
of this. Still, minimizing costs is of the essence. In Plummer (2007) I suggest a framework under
which this might be done; additional ideas are found in WTO 2011 and “multilateralising
regionalism” work forthcoming from the OECD.
14
15
It is not clear that much has changed in Latin America: MERCOSUR, which is a customs union between Brazil,
Argentina, Paraguay, and Uruguay, has often been reluctant to open certain markets domestically (e.g.,
automobiles) and the customs union itself has over 1,000 exemptions.
Perhaps it would be more accurate to say “anecdotally,” as the empirical literature on this subject is not well
developed.
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4. THE NEW REGIONALISM IN THE ASIA-PACIFIC
There have been many excellent surveys of regional economic integration in Asia (e.g., ADB
2012, ADB 2008, Kawai 2005). Several factors influencing the regionalism trend in East Asia
stem directly from the Asian Financial Crisis, including: (1) the obvious contagion relationships,
which demonstrated the policy externalities across countries in ASEAN and the NIEs; (2) major
disappointment with respect to the Western reaction to the Crisis, leaving the feeling of “being in
it alone together”; (3) disappointing progress in APEC in achieving closer trade and financial
cooperation, as well as development assistance cooperation; (4) Japan’s offer to create an Asian
Monetary Fund during the Crisis—opposed by the IMF and the US—gave the impression that
Japan wanted to be pro-active in the region; (5) arguably, the PRC’s decision not to devalue
during this period also created a sense of solidarity; (6) the “New Miyazawa Plan,” launched in
October 1998 which dedicated $30 billion to help spur recovery in East Asia (and deemed highly
successful) 16 ; and (7) the policies promulgated by the IMF to solve the Crisis were deemed
inappropriate, giving greater credibility to the “Asian approach.”
Hence, the Crisis itself set the stage for serious and durable East Asian regionalism. There are
many other internal and external forces at work that have expedited the process, such as the
rise of regionalism globally and its potential negative effects on the region; the successful
example of the Single Market Program in Europe; general pessimism regarding what can be
achieved at the WTO in light of failure to move forward at the Seattle and Cancun WTO
Ministerials; and the potential inherent benefits of FTAs. Importantly, bringing down barriers to
economic interaction in order to lure FDI and promote production networks has certainly been a
key factor in the ever-expanding intra-regional (Table 1) and extra-regional (www.aric.adb.org)
agreements. Nevertheless, I would suggest that the next wave of regionalism will be in favor of
regional accords, rather than the plethora of bilateral FTAs that constitute the “Asian noodle
bowl.”
A strong majority of the RTAs concluded or initiated by Asian economies were bilateral FTAs,
which tend to be easier to negotiate than, say, larger memberships or deeper accords such as
customs unions. Moreover, a majority of these FTAs are with economies outside of Asia. Thus,
when Asian governments consider bilateral accords, they think globally, rather than just
regionally. These priorities reflect the driving forces behind regionalism in Asia, which tend to be
economic rather than political. Indeed, this might distinguish Asia from bilateral and regional
accords elsewhere, which tend to be politically dominated. For example, early integration
initiatives in Europe, beginning with the Coal and Steel Community and the European Economic
Community, had strong political backing (integrating France and Germany after the World War II,
Cold War exigencies), even though the economics were somewhat dubious at the time. Even
monetary union in the EU was made possible due to political reasons, that is, post Cold War
incentives and, in particular, facilitating the political integration of East and West Germany. In
fact, the need to support economic integration in Asia is even helping to overcome some of the
most difficult obstacles to cooperation in the region; a decade ago few if anyone could have
foreseen that the PRC, the Republic of Korea, and Japan would be able to improve relations
sufficiently to sit down and negotiate an FTA. Yet, that is exactly what was agreed to at their May
2012 Summit, with negotiations perhaps beginning as early as November 2012.
If this thesis that Asian regionalism is based on economics is correct, then the creation of
regional accords would certainly emerge as a more efficient approach than bilateral FTAs. While
the vast majority of empirical studies on bilateral FTAs in Asia would suggest that these accords
16
Kawai (2005).
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have had (or will have) a positive effect on welfare of their member-states, with small negative
effects on the rest of the world in terms of trade diversion, they clearly have important
shortcomings (as noted above). But most importantly: if the driving force behind regionalism
in Asia pertains to international and regional production networks, bilateral FTAs will tend
to fall short. Regional FTAs would be needed to optimize regional production networks and
lower costs associated with, for example, rules of origin (via cumulation), and outward-oriented
regional FTAs that minimize discrimination against non-partners and have open membership
clauses would facilitate international production networks.
We might call the realization of the need to create regional FTAs the “new regionalism” in Asia.
Creating these regional institutions that will facilitate the integration of the region over the
medium-long term will no doubt be high on the agenda of most Asian policymakers in years to
come. We might consider two “pathways” in this regard: one East Asian, the other Pacific Rim.
To begin, in 2004 the ASEAN+3 Economic Ministers commissioned a study of the feasibility of
an East Asia FTA (EAFTA), and this idea has gained prominence in recent years. With the
likelihood of PRC+Japan+Republic of Korea negotiations for an FTA starting this year, a
Northeast Asian FTA would make an ASEAN+3 FTA relatively easy, since each of the Three has
an FTA with ASEAN (and the EAFTA would, therefore, be a question of consolidation). There
has also been support for the creation of a “Comprehensive Economic Partnership in East Asia”
(CEPEA), which would be composed of the ASEAN+3, Australia, New Zealand, and India
(ASEAN+6).
The Trans-Pacific Partnership (TPP) agreement negotiations have also been gaining momentum
since they were launched in 2008. The TPP builds on a high-quality FTA between four small,
open economies (Brunei Darussalam, Singapore, New Zealand, and Chile), known as the “P4,”
and in addition to these negotiators the TPP includes the US, Australia, Malaysia, Viet Nam, and
Peru (the “TPP 9”). At the APEC Summit in Honolulu in November 2011, Japan, Canada, and
Mexico expressed their interests in eventually entering negotiations. On the sidelines of the G-20
Heads of State meetings in Los Cabos, Mexico, Canada and Mexico were invited to join the TPP
negotiations (the Japanese application has not yet moved forward). In July 2012, the TPP
concluded its 13th Round in San Diego, US, with the objective of trying to finish by the end of
2012.
The TPP is distinct not only in terms of the large differences in levels of development (from lowmiddle-income developing countries like Peru and Viet Nam to high-income, advanced OECD
members like the US and Australia) but in terms of its ambitions to become a “21st Century”
agreement that would embrace a wide-variety of areas, from trade in goods and services to
science and technology and small- and medium-sized enterprises, including many difficult-tonegotiate behind-the-border measures. Its membership is technically open to any APEC member;
indeed, its ultimate goal is the creation of a “Free-Trade Area of the Asia Pacific” (FTAAP) that
would include all APEC members. Both the EAFTA and TPP “tracks” were cited by APEC at its
2010 Summit in Yokohama as paths to the creation of an FTAAP. Clearly, there is a good deal of
membership overlap between the EAFTA and TPP economies.
Petri, et al. (2011) use an advanced Computable General Equilibrium (CGE) modeling approach
to estimate the economic impact of the “Asian track” (EAFTA) and the “Transpacific track” (TPP)
as pathways to the FTAAP. The Asian track assumes a PRC, Japan, Republic of Korea FTA in
2012 and then an EAFTA (ASEAN+3) in 2015; for the Transpacific track, they assume a TPP9
agreement in 2012 and an expansion in 2015 to include Japan, the Republic of Korea, Canada,
and Mexico. They assume that both tracks eventually lead to an FTAAP that would begin in
2020. They estimate fairly large gains for both tracks: the effects on the world economy would be
small initially but by 2025 the annual welfare gains would rise to $104 billion on the TPP track,
$303 billion on both tracks, and $862 billion with an FTAAP. Interestingly, the biggest gains
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accrue when the two tracks are consolidated; in effect, this results from both the PRC and the
US being included in the same agreement.
As of this writing, the outlook for a PRC, Japan, and Republic of Korea FTA (and, hence, an
EAFTA within several years) and the TPP9—or even the TPP11—seems fairly bright within the
next year or two. And should each of these tracks begin implementation in the short-run, the
medium-term goal of an FTAAP would seem much more within reach. The literature is replete
with arguments as to why the FTAAP will not be reached for various reasons, prominent among
them being US-PRC trade relations. But it is worth underscoring that the PRC and the US are
big economic winners in the FTAAP scenario in Petri et al. (2011). Success in this regard would
be consistent with the diplomatic and political goals of both countries, and eight years is a long
time in trade policy.
5. CONCLUSIONS
We can summarize the main conclusions of this study as follows:
1. A strong, vibrant WTO is essential to the prosperity of the international trading system.
2. Still, it is important to note that the prospects for significant liberalization scenarios under the
WTO in the near future are not bright. The ten-years-plus DDA single-undertaking is on hold
(again) and will likely not start up again until mid-2013 at the earliest; other possible liberalization
approaches (e.g., “plurilaterals”) are possible but, again, difficult and fraught with potential
problems, depending on how they develop.
3. While a multilateral approach to trade policy is best ceteris paribus, regionalism does have a
number of advantages in that it is able to achieve more progress in a shorter period of time
within the context of a group of like-minded countries. Global free-trade is not an option at
present (or likely in my lifetime, and I hope to live a long time), and even if it were what could be
tackled at the multilateral level with 157 (and growing) diverse economics in the WTO context
would be far less than what can be achieved within a regional grouping.
4. Of course, if regionalism is “closed,” it will be detrimental to the global trading system. We
survey the issues related to the “stumbling bloc versus building bloc” debate and suggest that
while FTAs do have potential drawbacks and that the essence of the agreement will be a key
determinant, FTAs can, indeed, be building blocs, particularly if the orientation of the integrating
economies is outward in nature, as in the case of Asia. A continued emphasis on outwardorientation, minimizing discrimination, inclusiveness and embracing the first-best needs to be
made in order to ensure that regionalism in Asia (and elsewhere) serves to enhance
competitiveness and support global free markets, rather than detract from them.
Finally, we also note that while regionalism is usually compared to multilateralism in the
literature, insufficient attention is, perhaps, placed on the inefficiencies of bilateral FTAs relative
to regional ones. We stress that regional arrangements are of the essence in the Asia-Pacific
region for economic (e.g., regional production networks) as well as diplomatic political goals.
This “new regionalism,” which has been supported by APEC, will lead to significant reductions in
the costs associated with bilateral FTAs (e.g., lower costs associated with rules of origin,
improved utilization rates) and seems to (rightly) be receiving a good deal more attention.
A successful conclusion to the TPP negotiations this year will likely increase the incentives of
Northeast Asian economies to work together with Southeast Asian economies to build the
EAFTA in the near future. If both of these Asian and Asia-Pacific tracks are concluded, the AsiaPacific region will be well on its way to a Free-Trade Area of the Asia Pacific (FTAAP) beginning
in 2020, which was articulated at the November 2010 Yokohama APEC Summit as the ultimate
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goal of the region’s trade cooperation. This process could also potentially draw in other
economies, e.g., in South Asia (India) and in Latin America.
Now, an APEC-only FTAAP itself, with over 60% of global GDP—let alone an FTAAP that
includes additional members—would be sufficient to create concerns as to the future of the
global trading system. Such concerns need to be allayed by emphasizing in word and deed that
Asia-Pacific cooperation is about open regionalism and supporting the global system, rather than
creating a competitor to it. That might take some doing. But in the meantime, it could well be
that, as in the case of the Uruguay Round and the Blake Island Summit of APEC in 1993, the
successful Asia-Pacific integration process could revitalize global negotiations well before 2020.
All that is certain is that trade policy over the next decade will be interesting.
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