Market must be defended: The role of counter-espionage policy in protecting domestic market welfare

Author(s):  
Alex Barrachina ◽  
Teresa Forner-Carreras
Keyword(s):  
Author(s):  
A. M. Russell ◽  
C. A. Martini ◽  
J. A. Rickard

AbstractThis paper examines the role of import tariffs and consumption taxes when a product is supplied to a domestic market by a foreign monopoly via a subsidiary. It is assumed that there is no competition in the domestic market from internal suppliers. The home country is able to levy a profits tax on the subsidiary. The objective of our analysis is to determine the mix of tariff and consumption tax which simultaneously maximizes national welfare. We show that national welfare does not have an internal maximum, but attains its maximum on a boundary of the consumption tax–tariff parameter space. Furthermore, the optimal value of national welfare increases as the tariff decreases and the consumption tax increases. The results obtained generalize the results of an earlier paper in which national welfare was maximized with respect to either a tariff or consumption tax, but not both.


2020 ◽  
pp. 6-12
Author(s):  
S. V. Savina

Today, a difficult situation has developed in the field of wages and incomes of the population, associated with the need to increase the level of wages and real incomes of the population, since low effective demand in the domestic market can become the main constraint on economic growth in the near future. The main goal of wage reform in modern conditions is to restore the role of wages as the main incentive for productivity growth and labor efficiency, which will have a positive impact on the functioning of production and will give an impetus to its further development.


2020 ◽  
Vol 66 (5) ◽  
pp. 120-130
Author(s):  
A. Khomutenko ◽  
V. Khomutenko ◽  
V. Drachenko

The importance of tax regulation of foreign economic activity is analyzed in this paper. The dynamics and structure of tax revenues to the State Budget of Ukraine are analyzed as well. Comparative analysis of VAT revenues from goods (works, services) produced in Ukraine and imported into its customs territory is carried out. The relationship between imports and VAT receipts of and excise duty on imported goods is determined. The dynamics and structure of excise duty revenues and import duties are investigated. The factors influencing the change of indicators of tax revenues from import operations are determined. Fiscal efficiency and taxes elasticity coefficient levied on imports are calculated. The regulatory role of special duties types (compensatory, special, anti-dumping), which are collected in order to protect the national producer and consumer is proved. Monitoring of additional customs receipts is carried out as a result of customs value correction by customs authorities. The preconditions and factors influencing the change in the volume of taxes on import transactions are identified. The necessity of improving the mechanism of collecting taxes on import operations is substantiated. It is proposed to reduce VAT rates, which depend on goods saturation in domestic market. Proposal to introduce the reduction factor to the duty rates used in order to stimulate critical and socially significant imports, as well as to investment goods imported into the customs territory of Ukraine is put forward. It seems that the tax policy in terms of import operations should be aimed at ensuring the rational commodity and geographical structure of imports, promoting domestic products competitiveness strengthening and protection domestic market and domestic producers. It is proposed to improve the mechanism of tax administration, which primarily involves focusing on working with dishonest taxpayers, exposing tax evasion schemes, providing appropriate tax collection services to honest taxpayers.


Author(s):  
António Carrizo Moreira ◽  
Luis Miguel D. F. Ferreira ◽  
Pedro Miguel Freitas da Silva

The existing literature on internationalization and purchasing is vast; however, the inward internationalization perspective is an under-researched topic. In this chapter, the authors review the literature on internationalization of small and medium enterprises (SMEs) to understand the main reasons behind international purchasing and the role of experience on internationalization. Using a survey and descriptive statistics, the results from 56 respondents show that SMEs source from a small number of countries and hold those relationships for several years. The main reasons underlying international purchases are lower prices and better product quality, regardless of goods availability on the domestic market. This chapter has some limitations concerning its exploratory nature, pertaining to its sample size. Some future research avenues are presented such as a deeper look on how internationalization processes differ when SMEs begin their activity by inward rather than by outward activities.


2001 ◽  
Vol 39 (4) ◽  
pp. 1177-1203 ◽  
Author(s):  
James E Rauch

The first two main sections survey the roles of transnational networks in alleviating problems of contract enforcement and providing information about trading opportunities, respectively. The next section covers how domestic networks influence international trade through their impact on domestic market structure. Two overarching questions unify these sections: how do networks affect efficiency, and will networks grow or shrink in importance for international trade over time. The last main sections develop research agendas for two less studied areas: the role of intermediaries who can connect foreign agents to domestic networks and the ability of transnational production networks to facilitate technology transfer.


2019 ◽  
Vol 17 (Suppl.1) ◽  
Author(s):  
Georgi Aleksiev

The production of organic products in Bulgaria is constantly growing and the role of this type of production in the development of the agricultural sector cannot be ignored. Bulgarian bio-products have an export orientation and a very small part are traded in the domestic market, which also determines the importance of their competitiveness for the future development of the sector. The purpose of this study is to analyze the competitive position of Bulgarian bio-products. In order to achieve its goal, the research has to solve the following tasks: to analyze the trade with organic products in Bulgaria; to evaluate the potential for development of trade in bio-products in the internal market; to evaluate the competitiveness of Bulgarian organic products.


New Medit ◽  
2019 ◽  
Vol 18 (3) ◽  
pp. 97-108
Author(s):  
Mahmoud Daneshvar Kakhki ◽  
Mohammad Mehdi Farsi ◽  
Behzad Fakari ◽  
Moustafa Kojori

Barley is one of the main crops after wheat and rice. The importance of this product increases because it is an essential input in the livestock and poultry industries. The prices of input, which used in the livestock and poultry industries, faced fluctuations in recent years. Thus, in this study, the price fluctuation of barley in the Iran Mercantile Exchange, Iran domestic free market and World Market compared by applying the GARCH model. This model applied to monthly prices of barley from March 2009 to February 2017. Also, the volatility and shock transmission of barley price between these three markets analyzed by the BEKK model. The results showed that the price fluctuations of the domestic market are more than the global market. In addition, the shocks and volatilities of the world and Iran free market transmitted to the Iran Mercantile Exchange. Thus, the use of new financial instruments in the domestic free market is necessary.


2009 ◽  
Vol 10 (2) ◽  
pp. 59-78 ◽  
Author(s):  
Ilan Alon ◽  
Leo-Paul Dana ◽  
Anna Jenkins

Why do small firms from small countries internationalize? This study investigates the motives of small-scale entrepreneurs from New Zealand to internationalize via exporting, and particularly evaluate the role of government assistance. Our empirical findings of 139 SMEs situated in the Canterbury region of New Zealand suggest that export is strongly related to government-induced programs. Also important are personal motivations, declining domestic sales, saturated domestic market and excess capacity.


2018 ◽  
Vol 33 (5) ◽  
pp. 585-598 ◽  
Author(s):  
Byoungho Jin ◽  
Hyeon Jeong Cho

PurposeThe purpose of this paper is to extend our understanding of the development of small- and medium-sized enterprise (SME) organizational capabilities and their contributions to export performance by incorporating two antecedents: one from the internal environment (international entrepreneurial orientation) and another from the external environment (domestic market competition).Design/methodology/approachA proposed framework built on resource-based view and contingency theory was tested using partial least squares with data collected from 470 Korean SMEs.FindingsInternational entrepreneurial orientation and domestic market competition both prompted SMEs to develop their technological and marketing capabilities, leading to enhanced performance in international markets. Full mediating effects of technological and marketing capabilities were discovered between international entrepreneurial orientation and export performance.Practical implicationsGiven the direct effect of organizational capabilities on export performance, SMEs should facilitate the spirit of international entrepreneurial orientation and heightened managerial awareness of domestic market competition to efficiently cultivate organizational capabilities.Originality/valueUnique findings indicate that SME capabilities can be optimally cultivated under the coexistence of an internal impetus (i.e. international entrepreneurial orientation) and a harsh external environment (i.e. domestic competition), demonstrating the significance of context in developing organizational capabilities.


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