definition consistent measurement of exchange market pressure currencies can be under severe pressure but in a managed exchange rate regime that is not fully visible via the change in the exchange rate the literature has proposed a way to measure such exchange market pressure emp indirectly by adding interest rate changes and forex interventions to the exchange rate change we demonstrate that this measure is not consistent with the definition of emp and develop a new measure that is consistent this is first derived within the commonly used monetary exchange rate model then we generalize the analysis by avoiding the use of an exchange rate model we find that the interest rate should not be taken in the first difference form used so far but rather in level form and relative to the interest rate chosen if the country had no exchange rate objective applications on the european monetary system and east asian crises confirm that this improvement is highly relevant in practice

an exchange market pressure measure for cross country analysis abstract emp measures in the existing literature are oriented towards applications in crisis dating and prediction we propose a modified emp measure where cross country comparisons are possible this is the sum of the observed change in the exchange rate with an estimated counterfactual of the magnitude of the change in the exchange rate associated with the observed currency intervention we construct a multi country dataset for emp in each month this opens up many new research possibilities

modelling the transport sector fuel demand for developng economies abstract this paper concentrates on the transport sector of six developing countries with similar common denominators namely turkey thailand pakistan morocco tunisia and malaysia by using standard econometric techniques we analyse the evolution of oil demand for road transport in these countries in relation to independent variables such as income population price of gasoline and diesel etc unlike the treatment in the present literature on the subject gasoline and diesel consumption are estimated separately due to the high share of diesel in the total transport sector consumption on the basis of the estimation over the period 1970 1990 on a country by country basis we forecast the demand for these six countries until 2010 the results of this study indicate that the transport sector will be the driving force for energy and oil demand as part of economic growth in these developing countries its share in the future energy market structure is expected to grow consequently the pricing policies of oil products in this sector have a crucial role for shaping rational economic and energy strategies within the framework of rising environmental concern

measuring and estimating exchange market pressure in the eu abstract this paper estimates a model of exchange market pressure for several eu currencies vis a vis the german mark over the period 1980 94 it differs from previous work in that we use principal components analysis to derive a measure of exchange market pressure rather than adding exchange rate and reserves changes or using ad hoc weighting schemes secondly we also try to explain movements in our measure of exchange market pressure by a wealth augmented monetary model the results suggest that exchange market pressure can indeed be explained by differential money growth the change in the long term interest rate differential real depreciation budget deficit and the current account for five members of the eu s exchange rate mechanism

subsidiary expansion contraction during times of economic crisis this paper compares two real options within country growth and across country operational flexibility to examine subsidiary expansion contraction during times of economic crisis specifically we examine how the real options orientations of individual subsidiaries interact with the general characteristics of multinational enterprise networks our main findings are that a economic crises can be detrimental for subsidiaries with stronger within country orientations and advantageous for those with stronger across country orientations and b network characteristics are not the sole determinants of subsidiary expansion contraction what really matters is how the real options orientations of individual subsidiaries mesh with the overall characteristics of the network they belong to

dual paths to performance the impact of global pressures on mnc subsidiary conduct and performance over the last decade the international business literature has placed ever greater emphasis on the role that learning and innovation play in determining multinational and multinational subsidiary performance the present research seeks to understand the organizational paths leading to such desirable outcomes as greater learning increased innovation and improved performance using a model tested with data collected through a survey of managers in subsidiaries of multinational firms we find dual independent paths to improved performance one through networking and inter unit learning and the other through subsidiary autonomy and innovation a particular feature of these findings is that they can be shown to be robust after controlling for a wide range of environmental pressures and firm and industry factors however in the absence of environmental controls the dual path finding is rejected these conflicting findings support the imperative to test models that include a diverse range of environmental pressures so that the true effects of organizational factors on learning innovation and performance can be identified

managing international interdependence ceo characteristics in a resource based framework this study s basic argument is that the level of a firm s international interdependence influences the pattern of ceo characteristics ideal for enabling a ceo to contribute to firm performance in

an analysis of gasoline demand elasticities at the national and local levels in mexico abstract the majority of evidence on gasoline demand elasticities is derived from models based on national data since the largest growth in population is now taking place in cities in the developing world it is important that we understand whether this national evidence is applicable to demand conditions at the local level the aim of this paper is to estimate and compare gasoline per vehicle demand elasticities at the national and local levels in mexico national elasticities with respect to price income vehicle stock and metro fares are estimated using both a time series cointegration model and a panel gmm model for mexican states estimates for mexico city are derived by modifying national estimates according to mode shares as suggested by graham and glaister 2006 and by estimating a panel within groups model with data aggregated by borough although all models agree on the sign of the elasticities the magnitudes differ greatly elasticities change over time and differ between the national and local levels with smaller price responses in mexico city in general price elasticities are smaller than those reported in the gasoline demand surveys a pattern previously found in developing countries the fact that income and vehicle stock elasticities increase over time may suggest that vehicles are being used more intensively in recent years and that mexico city residents are purchasing larger vehicles elasticities with respect to metro fares are negligible which suggests little substitution between modes finally the fact that fuel efficiency elasticities are smaller than vehicle stock elasticities suggests that vehicle stock size rather than its composition has a larger impact on gasoline consumption in mexico city

the integration of subsidiary political activities in multinational corporations just as the competitive activities of mnc subsidiaries exhibit differentiation as well as integration so might mnc political activities this paper combines the literatures on international business government interactions and on multinational corporations with resource dependence theory as a foundation we develop and test hypotheses on factors that might influence the degree to which subsidiary political activities are integrated with affiliated organizations we find that subsidiary strategic integration and the economic integration of the host country significantly influence integration of subsidiary political activities

global account management strategies drivers and outcomes global account management gam has become a vital part of many multinational enterprises global marketing yet little is known about successful gam strategies in this study we conceptualize gam strategies and develop and empirically test an integrated theoretical model that links gam strategies to their drivers and outcomes we find that 1 global strategic priority and globalization are significant drivers of four gam strategies inter country coordination inter organizational coordination marketing activities standardization and global integration 2 inter country and inter organizational coordination have significant main effects on gam performance while global customer demand positively moderates the effects of marketing activities standardization and global integration on gam performance and 3 gam performance significantly influences relationship continuity we discuss the theoretical and managerial implications and provide suggestions for future research

global platforms and ecosystems implications for international business theories the emergence of digital platforms and ecosystems dpe as a venue for value creation and capture for multinational enterprises holds considerable implications for the theory and practice of international business in this paper we articulate these implications by considering the dual perspectives of cross border platforms and ecosystems as a venue for multifaceted innovation and as multisided marketplace and focusing on three overarching themes at the intersection of dpes and international business that is dpes as affording new ways of internationalization as facilitating new ways of building knowledge and relationships and as enabling new ways of creating and delivering value to global customers we explain specific dpe related concepts and constructs that underlie these themes and discuss how they could be incorporated into existing ib theories in ways that would enhance their richness and continued relevance as well as their ability to better predict a multitude of emerging ib phenomena

managing foreign subsidiaries agents of headquarters or an interdependent network in this study two different theoretical perspectives are used to develop sets of hypotheses regarding the mechanisms used to manage foreign subsidiaries of multinational corporations first agency theory serves as the basis for a model that predicts the use of monitoring mechanisms and incentive compensation then it is argued that these mechanisms are insufficient for managing subsidiaries characterized by high levels of intra firm international interdependence the management of which is critical to many of today s complex global firms a second set of hypotheses is argued linking international interdependence to several social control mechanisms primary and secondary data from u s based multinational corporations were used to test both sets of hypotheses the results indicate that agency theory although a useful foundation for studies of control within mncs is limited in its ability to explain fully the phenomenon of foreign subsidiary control however the model based on intra firm interdependence had much greater predictive ability copyright 2000 john wiley sons ltd

an empirical analysis of the integration responsiveness framework u s construction equipment industry firms in global competition in this study businesses competing as part of the global u s construction equipment industry were categorized into three subgroups according to the integration responsiveness framework i r in an attempt to further understand industry pressures confronting businesses that compete internationally the results show that three generic strategies suggested by the i r framework do appear in a single industry context globally integrated locally responsive and multifocal beyond providing additional insight into the nature of competition in a single global industry several broad extensions to the integration responsiveness framework are suggested

liability dollarization exchange market pressure and fear of floating empirical evidence for turkey the objective of this article is to examine the relationship between liability dollarization and the exchange market pressure emp in turkey within an autoregressive distributed lag ardl and granger causality framework using monthly data from 1991 12 to 2006 08 the findings suggest that there exists a long term equilibrium relationship between emp and liability dollarization where liability dollarization granger causes emp both in the short and long run with no evidence of reverse causality this suggests that the predominance of foreign currency liabilities in the banks balance sheets in turkey induces a selling pressure in the exchange market as well as a fear of floating

an empirical analysis of gasoline demand in denmark using cointegration techniques abstract danish time series data covering the period 1948 1991 are used in order to estimate short run and long run elasticities in gasoline demand a cointegration test for a stable long run relationship between the variables in the model proves to be positive showing a smaller value of the long run price elasticity than often quoted in empirical studies of gasoline demand finally an error correction model is estimated

empirical assessment of the determinants of road energy demand in greece this paper attempts to cast light on the determinants of road energy demand in greece for this purpose we used cointegration techniques and vector autoregression var analysis in order to capture short run and long run dynamics for gasoline and diesel demand respectively from the empirical analysis that covers the period 1978 2003 we find that in the long run gasoline energy demand appears to be price and income inelastic while diesel demand appears to be price inelastic and income elastic we also found that the absence of close substitutes in the road sector denotes the low level of energy switching in greece

short and long run elasticities of gasoline demand in india an empirical analysis using cointegration techniques abstract in developing countries like india consumption of petroleum products has implications on its balance of payments economic growth and fiscal deficit gasoline is one of the prime petroleum products in this paper the relationship between gasoline demand national income and price of gasoline is empirically examined using cointegration and error correction techniques the time frame of the analysis is from 1972 1973 to 1993 1994 it has been found that gasoline demand is likely to increase significantly for a given increase in the gross domestic product the increase will be larger in the long run 2 682 than in the short run 1 178 gasoline demand is relatively inelastic to price changes both in the long and short terms the error correction model has shown that gasoline demand adjusts to their respective long run equilibrium at a relatively slow rate with about 28 of adjustment taking place in the first year

implementing global strategy characteristics of global subsidiary mandates implementing a global strategy requires coordinating subsidiary activities across country locations the assumption often made is that such coordination must be managed at headquarters however an alternate approach is decentralized centralized responsibilities in which different subsidiaries within the multinational are given worldwide mandates to manage specific products or products lines this study identifies subsidiary characteristics that are associated with receiving a global mandate by examining foreign subsidiaries located in france germany japan u k u s and canada

an empirical analysis of the integration responsiveness framework in global industries in this study businesses competing in global industries were categorized into three groups according to the integration responsiveness framework for conceptualizing industry pressures confronting business competing internationally using this framework contextual conditions associated with each group were examined competitive attributes distinguishing each group were then identified to clarify alternate business level strategies for competing within a global industry context beyond providing additional insight into the nature of competition in global industries several broad extensions to the integration responsiveness framework are suggested

global account management in multinational corporations theory and evidence this paper uses two theoretical perspectives information processing and resource dependency to examine global account management the co ordination of activities involved in serving a single customer in multiple countries it is hypothesized that global account management structures allow the multinational corporation mnc to increase its information processing capacity as well as its bargaining power vis a vis the global customer using data on 106 global accounts in 16 mncs we find support for both perspectives individually furthermore evidence is presented for an interaction effect in which the effectiveness of structures for increasing information processing is conditional upon the presence of high customer dependence

taxing tourism the case of rental cars in mallorca abstract tourism statistics point towards increased tourist mobility in holiday destinations with a subsequent rise in associated externalities above all those related with the use of hire cars this paper therefore suggests that a fixed rate tax should be levied on vehicle hire in order to reduce congestion externalities and thus achieve more efficient traffic levels with this purpose in mind count data models were used to assess alternative ways of modelling the demand function for hire cars in mallorca spain so that the corrective potential of the proposed tax could then be analysed although the inelasticity that was observed might indicate a low short run capacity to internalise costs it also represents a high potential for raising revenue that could be used to fund alternative means of group transport in the mid run this would lead to increased elasticity and in consequence to better internalising effectiveness

short run long run and cross elasticities of gasoline demand in brazil gasoline is one of the most important of the oil derived products its importance is closely related to its participation in the value of imports of many countries and in a number of cases it is one of the determinants of their balance of payment deficit fiscal deficit and economic growth as opposed to most nations brazil has had a gasoline substitute since 1985 alcohol many studies have tried to estimate the income and price elasticities of the demand for gasoline in several countries this paper extends previous studies by estimating the cross price elasticity between gasoline and alcohol our findings indicate that alcohol is an imperfect substitute for gasoline even in the long run as a consequence the need for a new fuel substitution must be initiated long before petroleum reserves vanish

international configuration and coordination archetypes for medium sized firms in global industries the purpose of this study is to determine the basic configuration and coordination patterns for medium sized firms competing in global industries analyzing 126 businesses competing in nine different global industries five distinct archetypes are identified the results suggest that selective globalization in which the firm defines its global strategy around a narrow subset of the value chain may lead to the most effective outcomes

estimation of tourism induced electricity consumption the case study of balearics islands spain tourism has started to be acknowledged as a significant contributor to the increase in environmental externalities especially to climate change various studies have started to estimate and compute the role of the different tourism sectors contributions to greenhouse gas ghg emissions these estimations have been made from a sectoral perspective assessing the contribution of air transport the accommodation sector or other tourism related economic sectors however in order to evaluate the impact of this sector on energy use the approaches used in the literature consider tourism in its disaggregated way this paper assesses the electricity demand pattern and investigates the aggregated contribution of tourism to electricity consumption using the case study of the balearic islands spain using a conventional daily electricity demand model including data for daily stocks of tourists the impact of the different population growth rate scenarios on electricity loads is also investigated the results show that in terms of electricity consumption tourism cannot be considered a very energy intensive sector

a re examination of the monetary model of exchange market pressure canada 1963 1988 in re evaluating the performance of the girton and roper 1977 two country monetary model of exchange market pressure emp for canada estimates are provided for an extended specification that allows for unrestricted dynamics results show the hypothesized negative effect of domestic credit growth on emp to be supported throughout the relevance both of the dynamics and of the hypothesized unitary tradeoff between exchange rate and international reserve movements for bank of canada policy is demonstrated for the sequence of fixed and floating exchange rate regimes contained in the 1963 1 1988 1 sample

analysing gasoline demand elasticities a survey this paper is a survey of studies on gasoline demand although there are very many dxerent studies in this eld which sometimes appear to arrive at contradictory results we find that with proper stratification of studies by model and data type much of the contict turns to consensus in this survey we classtfy studies by data type and by ten d erent categories of model and with the exception of estimates on seasonal data which tend to be unstable and of certain inappropriate model formulations we find a fair degree of agreement concerning average short run and even long run income and price elasticities

evaluating a seasonal fuel tax in a mass tourism destination a case study for the balearic islands abstract this paper estimates the monthly aggregate demand for diesel oil and gasoline in a mass tourism region characterized for a high level of seasonality using time series models price elasticities are estimated with special emphasis in evaluating differences between seasons in order to assess the consequences of a fuel tax applied exclusively during the high season using the case study of the balearic islands spain from january 1999 to december 2010 results from a partial adjustment model show a relatively low price elasticity evidencing how the internalizing mechanism that could be argued for introducing the tax in order to reduce transport externalities does not work additionally no statistical differences have been found between seasons for both fuels invalidating the argument that tourism activity reacts differently to host activity

elasticities of transport fuels at times of economic crisis an empirical analysis for spain abstract this paper provides an updated calculation of the price and income responsiveness of spanish consumers of transport fuels with an explicit exploration of the effects of the recent economic crisis we examine separate gasoline and diesel demand models using a set of estimators on a panel of 16 spanish regions over the period 1999 2015 the paper confirms the persistence of low own price elasticities both for diesel and gasoline in the short and long runs it also shows that the crisis of 2008 2013 slightly increased the price elasticity of demand for transport fuels with a higher effect on diesel than on gasoline by contrary the crisis slightly reduced the income elasticity of transport fuel demand given the intensity and length of the economic recession in spain the results of this paper may be useful to anticipate the effects of domestic public policies that impact transport fuel prices as well as to advance some of the potential consequences of crises elsewhere

patterns of strategic control within multinational corporations the management of multinational operations is often required to balance conflicting priorities between responsiveness at the national subsidiary level and central coordination for global competitiveness such balancing requires that relevant data be brought to bear on decisions that consensus be created among key managers and that relative power among them be carefully balanced in large complex mncs the balancing process can be institutionalized through the structuring of relationships between headquarters and subsidiaries

estimating the demand for gasoline in developing countries senegal abstract this paper estimates the aggregate demand for gasoline in senegal from 1970 to 2008 the long term and short term elasticities of demand with respect to gasoline prices and income are of paramount interest in this study in senegal rising food prices unemployment and shortage of electric supply are always associated with the spiking cost of world oil prices to understand the external shocks of world oil price and demand for gasoline in senegal this study tested a log linear model against the linear model of the demand for oil function with lagged dependent variables as an explanatory variable here the linear specification of the demand for oil is rejected in this study in favor of the log linear the natural log transformation is typical when using high frequency data and significantly reduces skewness and kurtosis generally in this study i found that short run elasticity is smaller than long run elasticity and gasoline demand is inelastic with respect to both price and income for both the short and long runs in senegal this is why researcher like moosa posits that this assertion can be rationalised on the grounds that oil is such an important commodity that does not have close substitutes at least for its uses 1998 p 3

a meta analysis of the price elasticity of gasoline demand a sur approach abstract automobile gasoline demand can be expressed as a multiplicative function of fuel efficiency mileage per car and car ownership this implies a linear relationship between the price elasticity of total fuel demand and the price elasticities of fuel efficiency mileage per car and car ownership in this meta analytical study we aim to investigate and explain the variation in empirical estimates of the price elasticity of gasoline demand a methodological novelty is that we use the linear relationship between the elasticities to develop a meta analytical estimation approach based on a seemingly unrelated regression sur model with cross equation restrictions this approach enables us to combine observations of different elasticities and thus increase our sample size furthermore it allows for a more detailed interpretation of our meta regression results the empirical results of the study demonstrate that the sur approach leads to more precise results i e lower standard errors than a standard meta analytical approach we find that with mean short run and long run price elasticities of 0 34 and 0 84 respectively the demand for gasoline is not very price sensitive both in the short and the long run the impact of a change in the gasoline price on demand is mainly driven by responses in fuel efficiency and mileage per car and to a slightly lesser degree by changes in car ownership furthermore we find that study characteristics relating to the geographic area studied the year of the study the type of data used the time horizon and the functional specification of the demand equation have a significant impact on the estimated value of the price elasticity of gasoline demand

exchange market pressure in postwar brazil an application of the girton roper monetary model this study applies lance girton and don roper s hereafter g r monetary model of exchange market pressure to the postwar brazilian monetary experience the model was designed specifically for the canadian managed float during the period 1952 62 the object of their model is to explain what they term exchange market pressure that is the pressure on foreign exchange reserves and the exchange rate when there exists an excess of domestic money supply over money demand in a managed floating exchange rate regime the basic theoretical proposition is that any such excess supply of money can be relieved by an exchange depreciation a loss in foreign reserves or in the context of a managed float by some combination of the two in this sense the g r managed float model used here is firmly rooted in the modern monetary approach to exchange rates and the balance of payments brazil provides a particularly good example for testing this approach not only because it is in many senses a unique example of a postwar managed float system but also because it can be treated as a small open economy in the sense that world prices and monetary conditions faced by brazil are taken as given this particularly suits the purpose of most modern monetary models which make this assumption and obviates the problems of monetary dependence and neutralization dealt with in the pioneering g r paper specifically the small country assumption permits us to devise a simple one country equation of managed floating which depends upon four essential ingredients 1 money demand 2 money supply 3 purchasing power parity and 4 monetary equilibrium 2 furthermore in brazil a much greater proportion of exchange market pressure was absorbed by exchange rate depreciation than in the canadian case where changes in reserves were large relative to exchange rate movements in short postwar brazil provides a singularly good opportunity to test the monetary model of exchange market pressure section i briefly states the essential elements of the monetary model and derives the equation to be tested for the brazilian experience from 1955 to 1975 section ii reports empirical results for the exchange market pressure model and section iii examines the applicability of the relative version of purchasing power parity for the time period considered section iv summarizes the results and discusses the merits of the monetary approach in light of the brazilian experience

greenhouse gases emissions growth and the energy mix in europe the importance of energy on greenhouse gases ghg emissions is reflected by the fact that 65 of said emissions in the world are currently due to the use and production of energy however most empirical emission models are found within the environmental kuznetz curve ekc framework which focuses on the relationship between emissions and economic development ang s 2007 2008 papers are some of the exceptions that simultaneously study the relationship between emissions growth and energy with respect to ang s research we contribute on two important aspects first while ang uses a particular country as the study and use time series techniques we take advantage of a panel data set of 24 european countries between 1990 and 2006 and use a dynamic panel data dpd framework second the impact of energy consumption on emissions would depend on the primary energy mix and on the final use of this energy and we consider both factors in the model

legitimizing leveraging and launching developing dynamic capabilities in the mne multinational enterprises mnes face simultaneous pressures for global integration and local responsiveness while the extant literature acknowledges that most mnes are neither entirely geared towards achieving global integration nor local responsiveness scarce attention is given to how mnes develop organizational flexibility to address multiple and shifting strategy pressures over time in this paper we draw on the dynamic capabilities literature to explore how the mne develops the capabilities needed to achieve this flexibility through a qualitative longitudinal case study spanning 12 years we identify three recombination capabilities legitimizing leveraging and launching capabilities through which the mne develops organizational flexibility we find that these recombination capabilities improve the mnes ability to sense and seize new opportunities and enable the mne to overcome organizational impediments to achieve flexibility our study offers a process perspective that shows how the three capabilities together nourish the mnes resilience to continuously balance between global integration and local responsiveness our findings have managerial implications illustrating that launching new strategic initiatives may fail if the mne does not have the capabilities to legitimize the new initiatives and to ensure that existing organizational strengths are properly leveraged to support the new initiatives

exchange market mayhem the antecedents and aftermath of speculative attacks exchange market mayhem the antecedents and aftermath of speculative attacks this paper evaluates the causes and consequences of episodes of turbulence in foreign exchange markets using data from 1959 through 1993 for twenty oecd countries we consider the antecedents and aftermath of devaluations and revaluations flotations fixings and speculative attacks which may not be successful we find that realignments of fixed exchange rates are alike devaluations are preceded by political instability budget and current account deficits and fast growth of money and prices revaluations are mirror images of devaluations speculative attacks resemble devaluations but money growth and inflation are more endemic and there is no last minute attempt to tighten monetary policy in contrast few consistent correlations link regime transitions like flotations or fixings to macroeconomic or political variables transitions between exchange rate regimes are largely idiosyncratic and are neither consistently provoked ex ante by systematic imbalances nor typically justified ex post by subsequent changes in policy we conclude that there are no clear early warning signals of many speculative attacks and no easy solutions for policy makers barry eichengreen andrew k rose and charles wyplosz

international strategy and environment an assessment of the performance relationship this study develops a classification of international business level strategies built on the dimensions of segment differentiation and geographic scope in addition performance outcomes associated with specific international environment and business level strategy matches are suggested using information from firms competing in both global and multidomestic industries the study finds that geographic scope and segment differentiation can be used to distinguish four international strategies the effectiveness of which is a function of the environments in which firms compete

split management control and international joint venture performance a framework is presented to characterize four different ways in which management control is partitioned between a multinational enterprise mne and local partners within international joint ventures jvs split control management shared management mne partner dominant management and local partner dominant management the framework was tested using a sample of international jvs in korea we found that jvs following the split control management performed better than any other approach no performance differences were found among the remaining three types of management control this suggests that mnes and local partners should split control that is choose the activities to control so that those chosen activities can be matched with their respective firm specific advantages

high profit strategies in mature capital goods industries a contingency approach high profit and low profit strategic gestalts in two different types of mature capital goods industries are examined multiple avenues to high profits are found within both types but they differ

exchange market pressure in korean an application of the girton roper monetary model note korea s exchange rates have been changing daily since its adoption of the flexible exchange rate system in february 1980 the purpose of this paper is to examine the simultaneous adjustment of both exchange rates and the balance of payments in korea the girton roper 1977 model of exchange market pressure is applied the model draws on a combination of the monetary approach to the balance of payments johnson 1972 and to exchange rate determination frenkel and johnson 1978 the main theoretical proposition of the girton roper hereafter g r model states that an excess domestic supply of money will cause some combination of currency depreciation and an outflow of foreign reserves the g r model of exchange market pressure was designed for the canadian managed float during the period from 1952 to 1962 connolly and silveira 1979 took the g r model and applied it to the brazilian experience for the period from 1955 to 1975 modeste 1981 used the same model to explain the monetary experience of argentina in the 1970s korean experience provides another good opportunity to test theoretical propositions of the g r version of the monetary approach to managed floating first of all korea fits the model of exchange market pressure because the country can be treated as a small open economy which takes foreign prices as given in addition changes in korea s exchange rates can be considered to be the product of market pressure since the korean won is linked to a multicurrency basket the exchange rate of the korean won is determined largely by the exchange rate formula which relies on both the special drawing right sdr basket and korea s own currency basket it is according to this formula that the bank of korea establishes daily the exchange rate in terms of the intervention currency the u s dollar l

a note on the exchange market pressure the korean experience 1980 1987 this paper applies the exchange market pressure emp model to korea under a managed floating exchange rate we show that the emp model is superior to one concentrating solely on foreign reserve or exchange rate changes given that the balance of paymnets in korea experienced a drastic turn to surplus during the estimated period we checked the stability of the coefficients the results show that the coefficients have remained stable

a review of research on the growth of multinational enterprises a penrosean lens abstract we provide a comprehensive review of the growth of multinational enterprises mnes based on a quarter century 25 years of scholarly international business publications we synthesize research insights on the determinants of the growth of mnes through the lens of penrose s theory of firm growth which is the most influential theoretical perspective on firm growth the review takes stock of the research findings on the facilitators constraints and the trajectory of growth of mnes and elaborates on the commonalities and differences between research on the growth of mnes that draws on penrose s theory and research that does not this comparison highlights the opportunity to build an internally coherent theory of the growth of mnes that is a theory that connects what an mne is to what determines an mne s growth it also indicates that past research placed a strong emphasis on exogenous factors e g cross country distances as key constraints on growth even though the penrosean lens suggests a close consideration of endogenous factors that drive international growth as well as endogenizing the ostensibly exogenous growth determinants the review highlights the importance of firm specific managerial knowledge and learning which shapes the direction of the growth of mnes and ensures its administrative coherence