are the poverty effects of trade policies invisible beginning with the wto s doha development agenda and establishment of the millennium development goal of reducing poverty by 50 percent by 2015 poverty impacts of trade reforms have become central

software piracy an analysis of protection strategies software piracy by users is generally believed to harm both software firms through lower profits and buying customers through higher prices thus it is thought that perfect and costless technological protection would benefit both firms and consumers the model developed here suggests that in some circumstances even with significant piracy not protecting can be the best policy both raising firm profits and lowering selling prices key to the analysis is joining the presence of a positive network externality with the fact that piracy increases the total number of program users the network externality exists because consumers have an incentive to economize on post purchase learning and customization costs

foreign entry cultural barriers and learning this paper examines the longevity of foreign entries hypotheses are developed on the mode start ups vs acquisitions and ownership structure wholly owned vs joint ventures in relation to cultural distance the hypotheses are tested within a framework of organizational learning using data on 225 entries that 13 dutch firms carried out from 1966 onwards results show that the presence of cultural barriers punctuates an organization s learning cultural distance is a prominent factor in foreign entry whenever this involves another firm requiring the firm to engage in double layered acculturation we also identify locational paths of learning the longevity of acquisitions is positively influenced by prior entries of the firm in the same country similarly the longevity of foreign entries in which the firm has a majority stake improves whenever the expanding firm engaged in prior entries in the same country and in other countries in the same cultural block

ethics on the web applying moral decision making to the new media this paper examines the advent of the web as a critical media tool in the promotion and sale of goods to consumers and the ethical questions it raises that are issues of public policy we examine four traditional ethical rationales that guide organizational decision making utilitarianism distributive justice moral rights of man and relativism further characterized as ends based equity based rules based and comparison based rationales and we apply them to four moral dilemmas attributed to the proliferation of dot com companies as they relate to consumer welfare we find that ethical rationale in the new media is largely non existent and where it exists it is primarily reactive and driven by utilitarian or relativistic reasoning we attribute this condition to the newness of the industry and to its economic context representing as it does many characteristics embodied in the concept of the perfect market we offer some remedies to improve ethical conduct by e business

platform investments and volatile exchange rates direct investment in the u s by japanese electronic companies this study examines the effects of previous entry on the subsequent decisions of japanese electronics companies to invest in the united states by gathering data at the firm level the empirical analysis provides a fine grain sorting out of firm and industry effects on foreign direct investment decisions the findings show that investment behavior is highly heterogeneous across firms and reflects their individual technological capabilities and their history of previous investments in the united states real exchange rate levels are also important the results suggest that initial investments serve as platforms for subsequent entry with the timing of entry triggered by movements in real exchange rates copyright 1996 by mit press

asset stock accumulation and sustainability of competitive advantage given incomplete factor markets appropriate time paths of flow variables must be chosen to build required stocks of assets that is critical resources are accumulated rather than acquired in strategic factor markets barney barney j 1986 strategic factor markets expectations luck and business strategy management sci october 1231 1241 sustainability of a firm s asset position hinges on how easily assets can be substituted or imitated imitability is linked to the characteristics of the asset accumulation process time compression diseconomies asset mass efficiencies inter connectedness asset erosion and causal ambiguity

explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector an extended penrosean perspective we adopt a penrosean perspective to study the effect of rapid international expansion on the subsequent divestment of international operations we draw on regional strategy theory and differentiate penrosean managerial resources by their geographical fungibility to argue that the effect of rapid international expansion on the divestment of international operations varies with the regional patterns of firms international expansion and international experience we test our hypotheses using two stage least squares 2sls estimation on data that capture the international expansion and divestment of retailers over the period 2003 2012

the global food crisis and guatemala what crisis and for whom summary international food prices rose sharply during 2006 08 precipitating the global food crisis we analyze the welfare effects of changes in prices over categories of households in guatemala and find three surprising results the first is that the transmission of international into domestic prices was quite modest the second is that most farm households are net buyers of food implying that they lost from rising prices the third is that farm households represent two thirds of all poor households losing from rising food prices stressing the importance of production for home consumption in sheltering the poor from the crisis

nonresponse and delayed response to competitive moves the roles of competitor dependence and action irreversibility competitive moves that are unchallenged or to which response is delayed are important weapons in a strategist s arsenal so variables that discourage or delay response are of great interest using

can first mover and early mover advantages be sustained in an industry with low barriers to entry imitation this study examines whether first mover and early mover advantages can be sustained in an industry where the barriers to entry are generally low and new product innovations can be easily imitated namely the money market mutual fund industry using a simultaneous equation supply and demand model of panel data from a variety of money market fund product categories the study finds that first movers and early movers enjoy both a highly sustainable pricing advantage and a moderately sustainable market share advantage these counterintuitive results are interpreted in terms of the structural characteristics of demand in the industry implications of these results for the ongoing debate between the sustainability and hypercompetition perspectives are discussed 1998 john wiley sons ltd

measuring globalization of industries using a national industry approach empirical evidence across five countries and over time this paper presents an objective measurement of industry globalization although crucial in understanding firm strategies industry globalization has been largely subjectively measured consisting of mostly case studies this research develops a two pronged measure of industry globalization based on a the extent of an industry s international linkages lit and b the integration of value added activities within the industry iit in addition of providing a quantitative equivalent to porter 1986 and bartlett and ghoshal s 1989 conceptual industry categorizations this measure permits the examination of important but previously untested notions regarding globalization using data for chemical and manufacturing industries for five major trading nations we find that 1 chemical industries are less global than manufacturing industries despite high levels of fdi found in chemical industries 2 u s globalization frequently assumed to be representative of worldwide globalization of industries is less than that of other major industrial countries and 3 industries in both sectors are globalizing over time consistent with the literature

cultural differences mne learning abilities and the effect of experience on subsidiary mortality in a dissimilar culture evidence from korean mnes in a departure from prior studies presuming a beneficial experience effect in foreign direct investment fdi the present paper examines the conditions under which fdi experience may actually harm subsequent subsidiaries we argue that multinational enterprises mnes may draw erroneous inferences and learn incorrectly from their early expansions when new to a dissimilar culture because their learning abilities are eroded by cultural differences we posit that the characteristics of an mne s international expansion including scope pace rhythm and entry mode moderate this negative experience effect by influencing the mne s learning ability in foreign cultures using a data set of fdis by south korean mnes between 1990 and 2006 we find a positive relationship between subsidiary mortality and experience when an mne has a low level of experience in a dissimilar culture this relationship is weaker if the mne s prior fdi has been dispersed across different cultures is stronger if it expanded internationally at a fast pace and becomes negative once the mne has accumulated a high level of experience in the host culture we conclude that when expanding into dissimilar cultures mnes must establish mechanisms to mitigate incorrect learning and reexamine the correctness of inferences drawn from past experience before applying them

the eclectic paradigm of international production a restatement and some possible extensions this article reviews some of the criticisms directed towards the eclectic paradigm of international production over the past decade and restates its main tenets the second part of the article considers a number of possible extensions of the paradigm and concludes by asserting that it remains a robust general framework for explaining and analysing not only the economic rationale of economic production but many organisational and impact issues in relation to mne activity as well

innovation and ethics ethical considerations in the innovation business in our global economy knowledge based industry is taking more importance recent years have seen the success of an increasing number of start up companies most technology based enterprises inanced by private persons or companies or through venture capital funds and public offering in many years those companies are faced at certain critical moments with matters involving intellectual property rights insider information and raising money these facts all have an ethical dimension there is an increasing need for ethical behaviour from all parties involved a code of conduct of all parties should be applied this paper describes the growth process of a company and the valuation of an innovation project it will overview a number of ethical issues at different stages in the innovation business and in the lifetime of a start up company such as the problems of intellectual property the confidentiality of information the negotiation process between the entrepreneur and the financier the marketing of raising funds and of an ipo and finally the information and insider trading the paper concludes with a plea for increased ethical behaviour and the need for rules of best practice for all parties the inventor the entrepreneur the financial investor and other stakeholders

foreign direct investment location strategies in the tire industry we analyze the nature of international competition among multinational firms in the tire industry using the frameworks of the theories of oligopolistic reaction and foreign direct investment we find that the firms investment patterns are related to the number and identities of competitors host country characteristics and foreign experience global tire companies from several nations demonstrate oligopolistic reaction behavior

rapid fdi expansion and firm performance today more firms are expanding rapidly into foreign markets to reach global scale quickly and to capture or nullify first mover advantages these trends run counter to the conventional theory of gradual internationalization which suggests that firms maximize the benefits of learning from prior experience thereby minimizing the hazard of failure we argue that this conventional wisdom does not consider the risk of being a perennial late mover in the face of increased global competition this study explores the circumstances under which rapid fdi expansion a strategy of undertaking fdi expansion at an accelerated speed can be a viable strategy using data on korean firm expansion we find that rapid fdi expansion enhances firm performance in industries where globalization pressures are high and when it is done by firms with superior internal resources and capabilities

learning from age difference interorganizational learning and survival in japanese foreign subsidiaries this paper extends research on experiential learning of foreign subsidiaries by exploring the temporal conditions under which a foreign subsidiary can benefit from the experience of its sister subsidiaries building upon organizational evolution and learning literature we propose that differences in entry timing among sister subsidiaries provide structural conditions that bound the opportunities for inter subsidiary learning we argue that different entry cohorts of sister subsidiaries are beneficial to a focal subsidiary as they provide non redundant complementary experience from their different operational stages and ignite the motivation to learn our empirical analysis of japanese foreign subsidiaries provides strong evidence that survival is enhanced by the experience of different entry cohorts of sister subsidiaries but not by that of similar cohorts qualitative evidence also shows that multiple channels of experience exchange across sister subsidiaries lead to actual learning we further show that the survival benefit derived from different cohorts is contingent on the level of environmental change as well as on the level of experience of the focal subsidiary and its parent firm our research highlights the importance of temporal heterogeneity in the internationalization process and offers implications for the temporal strategy of multinational companies

internationalising in small incremental or larger steps we argue that companies may enter foreign environments either incrementally as suggested by long established theory or by taking larger steps that may result in lower initial performance but through learning and experience lead to increased performance in future expansions this idea is corroborated by the experience of dutch companies entering into central and eastern europe we also find that expansion steps may be too large thereby limiting the exploration of foreign environments our study suggests that sequential internationalisation strategies do still matter and that companies have to balance exploitation and exploration in internationalisation

international versus domestic entrepreneurship new venture strategic behavior and industry structure abstract international entrepreneurship is defined in this study as the development of international new ventures or start ups that from their inception engage in international business thus viewing their operating domain as international from the initial stages of the firm s operation one hundred and eighty eight new venture firms in the computer and communications equipment manufacturing industries are classified according to the percentage of their sales in the international market ventures with no sales derived from international activities are considered domestic new ventures and ventures with sales from international activities comprising greater than 5 of total sales are considered international new ventures the strategy and industry structure profiles of international new ventures are significantly different from domestic new ventures the internationals pursue much broader market based strategies seeking a strategy of broad market coverage through developing and controlling numerous distribution channels serving numerous customers in diverse market segments and developing high market or product visibility the internationals also emphasize a more aggressive entry strategy building on outside financial and production resources to enter numerous geographical markets on a large scale securing patent technology is also an important component of their strategy this suggests that the internationals compete by entering the industry on a large scale seeking to penetrate multiple markets with the recognition that external resources are necessary to support such an entry whereas both the domestics and the internationals characterize domestic competition as being relatively intense the international new ventures compete in industries with higher levels of international competition it is not clear from this research whether the new venture selects an industry with a high degree of international competition and therefore responds with an international orientation or because the new venture has an international orientation it perceives or recognizes a higher degree of international competition another industry structure difference is the internationals perceived higher degree of restrictiveness due to government regulation it is unclear whether this restrictiveness motivates new ventures to seek less regulated international environments or if it indicates that when competing internationally the new venture is confronted with increased regulatory requirements domestic new ventures are distinguished by their emphasis on a production expansion strategy and customer specialization strategy the production specialization strategy consists of focusing on limited geographical markets maintaining excess capacity and pursuing forward integration the customer specialization strategy incorporates the production of a specialty product that is purchased infrequently thus for both of the domestic strategies a consistent closeness between the producer and consumer is implied this may be an important basis underlining the new venture s decision to compete in an exclusive domestic context this study offers initial support for the notion of international entrepreneurship by its findings that there are significant differences between new venture firms competing domestically and new ventures choosing to also enter international markets

born global or born regional evidence from an exploratory study in the costa rican software industry this paper provides empirical evidence about born global firms in the software industry of a small developing country with an open economy costa rica the paper is based on data collected through interviews with ceos or founders of 40 costa rican software companies findings show that there are few born global firms among costa rican software providers we find that most companies followed a gradual approach to internationalization and they did not export immediately upon birth a careful analysis of firms that exported soon after they were born reveals that most firms are actually born regional

internalization an event study test abstract the internalization theory of multinational firms proposes that direct international investment occurs when a firm has information related intangible assets with public good properties we find that firms with characteristics suggesting the presence of information based assets experience a significantly positive stock price reaction upon announcing a foreign acquisition on the other hand firms apparently lacking such assets experience at best zero abnormal returns upon announcing overseas acquisitions

the effect of national culture on the choice of entry mode characteristics of national cultures have frequently been claimed to influence the selection of entry modes this article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry two hypotheses are derived which relate culture to entry mode choice one focusing on the cultural distance between countries the other on attitudes towards uncertainty avoidance using a multinomial logit model and controlling for other effects the hypotheses are tested by analysing data on 228 entries into the united states market by acquisition wholly owned greenfield and joint venture empirical support for the effect of national culture on entry choice is found

chinese multinationals fast internationalization financial performance advantage in one region disadvantage in another our study reveals the financial performance implications of the speed at which chinese multinational enterprises cmnes expand into intra regional versus inter regional host countries in doing so we propose a framework that integrates internationalization speed and home regionalization literatures using data from 767 publicly listed cmnes from the years 2002 to 2014 we discover that the faster the intra regional internationalization the better the firm s financial performance whereas faster inter regional internationalization demonstrates a poorer financial performance we also find that fast mover cmnes technological and marketing resources are valuable in intra regional host countries but vulnerable in inter regional host countries we discuss the implications of these findings for studies of the uppsala internationalization process model and regional mnes

the ethics of counterfeiting in the fashion industry quality credence and profit issues one of the greatest problems facing luxury goods firms in a globalizing market is that of counterfeiting the purpose of this paper is to analyze the different types of counterfeiting that take place in the fashion industry and the ethical issues raised we argue that the problem partly lies in the industry itself copying of designs is endemic and condoned which raises several ethical dilemmas in passing judgment on the practice of counterfeiting we analyze the ethical issues in a number of different types of counterfeiting encountered in the fashion industry we conclude with some observations on the general implications for ethics in intellectual property rights

the transaction costs theory of joint ventures an empirical study of japanese subsidiaries in the united states this paper offers the first large sample empirical study of the factors which influence the choice of japanese firms between full or partial ownership of their u s manufacturing subsidiaries it studies for the first time the ownership policies of investors of a single home country in a single host country thus keeping variations within home and host countries constant one methodological improvement over previous studies is the use as independent variables of the relevant characteristics of the investing firms these had been proxied in previous studies by data on u s industries entered the results suggest that the degree of ownership taken by japanese manufacturing investors in their american subsidiaries is driven by the same general transaction costs variables that determine the choices made by their u s counterparts japanese parents joint venture when they need to combine with other firms intermediate inputs which are subject to high market transaction costs an intriguing result however is the lack of significance of two variables which in the u s case strongly push towards full control of foreign subsidiaries in this study neither the japanese parent s r d nor its advertising intensities had any significant impact on their ownership policies

assessing global computable general equilibrium model validity using agricultural price volatility computable general equilibrium cge models are commonly used for global agricultural market analysis concerns are sometimes raised however about the quality of their output since key parameters may not be econometrically estimated and little emphasis is generally given to model assessment this article addresses the latter issue by developing an approach to validating cge models based on the ability to reproduce observed price volatility in agricultural markets we show how patterns in the deviations between model predictions and validation criteria can be used to identify the weak points of a model and guide development of improved specifications with firmer empirical foundations

becoming a multinational enterprise using industry recipes to achieve rapid multinationalization we aim to build a greater understanding of how young entrepreneurial firms internationalize fast through foreign subsidiaries to become a multinational enterprise mne despite the prevalence of fast paced international expansion theory development on how it is achieved through high commitment entry modes has been scarce our work substantially addresses this gap by conceptualizing how rapid multinationalization occurs using qualitative case studies we explore eight young entrepreneurial firms operating in the software as a service industry aspiring to achieve early market dominance internationally through rapid multinationalization drawing on the concept of industry recipes we explain how recipe heuristics and recipe augmentation enable rapid multinationalization and showcase the economic and knowledge acquisition logics which underpin these endeavors this study introduces internationalization via industry recipe explains the micro level regulation of internationalization speed and contributes to aligning international entrepreneurship and mne perspectives on internationalization

timing order and durability of new product advantages with imitation this research examined the effects of timing order and the durability of first mover advantages by analyzing the stock market reactions to new product introductions and imitations the major findings are that both timing and order of moves are important and that rival reactions undermine the durability of first mover advantages more specifically 1 early and fast movers achieve greater gains than late and slow movers and 2 first movers suffer at the time of new product imitations copyright 2000 john wiley sons ltd

the effect of own firm and other firm experience on foreign direct investment survival in the united states 1987 92 we argue that foreign firms operating in a host country generate information spillovers that have potential value for later foreign direct investment we test two predictions first we expect foreign direct investments by firms with experience in a host country to be more likely to survive than investments made by first time entrants second foreign direct investments will be more likely to survive the greater the foreign presence in the target industry at the time of investment subject to two contingencies the first contingency is that the relationship will be weak or nonexistent among firms with no experience in the host country because these firms have difficulty evaluating and taking advantage of the information spillovers the second contingency is that the presence of other foreign firms will not affect investment survival among firms that already have a presence in the target industry and undertake expansion these firms already possess general information about the target industries and are unlikely to gain additional benefit from information spillovers we find supportive evidence based on the survival to 1992 among 354 u s investments undertaken by foreign firms in manufacturing industries during 1987 1997 by john wiley sons ltd strat management j vol 18 811 824 1997 no of figures 1 no of tables 3 no of references 35

springboard internationalization by emerging market firms speed of first cross border acquisition according to the springboard perspective emerging market multinationals seek strategic assets aggressively from the outset in this paper we investigate the role of firms institutional embeddedness in terms of age and affiliation to business group on their aggressive internationalization pursuits an issue which has remained less explored in international business scholarship this study based on 8163 indian listed firms over 18 years identifies a trend that younger firms founded in the liberalized era post 1991 and unaffiliated firms are more likely to pursue aggressive internationalization by conducting their first cross border acquisition cba faster among affiliated firms younger ones are relatively faster in conducting their first cba furthermore the evidence signals a moderating impact of inter group heterogeneity in terms of group level assets and foreign investments on the relationship between firm age and aggressive internationalization

export restrictions and price insulation during commodity price booms for individual countries variable trade barriers can be used to reduce the volatility of domestic relative to world prices if this is done by countries accounting for a large share of the market its effect is offset by increases in world price volatility this study shows the nature of the resulting collective action problem with the policy being ineffective on average in stabilizing domestic prices while increasing the volatility of the income transfers from terms of trade changes a simple approach to assessing the contribution of insulation to the price increases is developed and used with new estimates of agricultural distortions to assess its contribution to the price spikes in 1972 74 and 2006 08 for rice and wheat the analysis suggests that 45 percent of the increase in rice prices in 2006 08 and 30 percent of the increase in wheat prices was due to insulating behavior one sign of progress since 1972 74 was a substantial reduction in the extent of price insulating behavior by the industrial countries this provides little stabilizing benefit in the rice market because countries not classifying themselves at the world trade organization as developing account for only 3 percent of world rice consumption but it does offer some benefit for the wheat market where non developing countries account for 27 percent of consumption

implications of higher global food prices for poverty in low income countries in many poor countries the recent increases in prices of staple foods raise the real incomes of those selling food many of whom are relatively poor while hurting net food consumers many of whom are also relatively poor the impacts on poverty will certainly be very diverse but the average impact on poverty depends upon the balance between these two effects and can only be determined by looking at real world data results using household data for ten observations on nine low income countries show that the short run impacts of higher staple food prices on poverty differ considerably by commodity and by country but that poverty increases are much more frequent and larger than poverty reductions the recent large increases in food prices appear likely to raise overall poverty in low income countries substantially

testing a causal model of corporate risk taking and performance the determinants of organizational risk taking and its impact on economic performance are critical issues in strategic management using a model that included risk performance performance expecta

internationalization as an evolutionary process the johanson and vahlne model of internationalization has been the main foundation of process research in international business since 1977 this model also known as the uppsala model provides a useful general framework for interpreting firm level processes increasing and occasionally decreasing resources committed to international operations however the model does not provide theoretical explanations of non linear and discontinuous dynamics of the process over time nor does it offer testable propositions we focus on the longitudinal dimension of internationalization specifically path breaking commitments that increase a firm s exposure to risk on this basis we examine the idea that the ip model represents an evolutionary process by emphasizing the role of novelty and introducing selection mechanisms we explain non linear and discontinuous dynamics of internationalization processes path breaking resource commitments create novelty and deviate from a gradual path of growth as firms take higher risks and hence face more intensive selection pressures in consequence firms are more likely to experience outstanding performance but are also more likely to experience failure this variation of outcomes is moderated by the resources a firm can draw upon in its ecosystem and by the volatility of its environment based on these ideas we develop testable propositions to advance the internationalization process model

innovation organizational capabilities and the born global firm we investigate born global firms as early adopters of internationalization that is companies that expand into foreign markets and exhibit international business prowess and superior performance from or near their founding our explication highlights the critical role of innovative culture as well as knowledge and capabilities in this unique breed of international entrepreneurial firm case studies are analyzed to better understand the early internationalization phenomenon and reveal key orientations and strategies that engender international success among these innovative firms case findings are then validated in a survey based study despite the scarce resources typical of young firms our findings reveal that born global firms leverage a distinctive mix of orientations and strategies that allow them to succeed in diverse international markets findings have important implications for the internationalization of contemporary firms

do foreign owned and u s owned establishments exhibit the same location pattern in u s manufacturing industries there are arguments to support and contradict the proposition that foreign owned and u s owned establishments exhibit similar location patterns within the united states this paper addresses these conflicting views by comparing the location of all manufacturing establishments in the united states held by the u s and by foreign firms the empirical evidence indicates that the location patterns of foreign owned and u s owned establishments differ moreover the most influential factor in explaining the location pattern difference is that foreign owned establishments compared to u s owned establishments favor coastal states i also find evidence to suggest that foreign firms favor states with low unionization rates low wage rates and right to work legislation these results are consistent with arguments that foreign establishments differ from their domestic counterparts and value location attributes differently

the moral legitimacy of intellectual property claims american business and developing country perspectives private property forms the bedrock of the business society relationship in a market economy in one way or another most societies limitwhat people can claim as property as well as theextent of claims they can make regarding it in the international arena today intellectual property rights are a focal point of debate many developing countries do not recognize the monopoly claims of patents and copyrights asserted by business as legitimate this paper reviews contemporary areas of dispute and then presents the tasks facing the construction of a fair intellectual property rights regime