Protectionism, usmca and its Possible Effects on Mexico’s Automotive Industry

2020 ◽  
Vol 7 (1) ◽  
pp. 81-104
Author(s):  
Elisa Dávalos

Mexico’s integration into the North American regional automotive industry is an outcome of nafta. This brought about Mexico´s insertion into regional value chains in the global automotive industry. The country now ranks as the seventh largest producer in the world owing to its attractiveness for foreign direct investment, cheap labour and proximity to the U.S. market. The nafta renegotiation and the emergence of the usmca resulted in a series of modified and stricter rules of origin. Among them, is a clause aimed at Mexico requiring that a percentage of labour content be paid more than $16 an hour. This article sustains that this clause will not really be a constraint for transnational auto companies’ desire to continue their investments and production of cars in Mexico. Rather, what could exclude Mexico from the international automotive production circuits is the upcoming technological change. In view of that, it is crucial that the government take steps to support the automotive innovation developments and the industry´s higher value-added phases.

Author(s):  
Elena Yu. Frolova ◽  

The place in the rankings of agricultural exporting countries in world trade is estimated in terms of the volume of imports and exports of raw materials and food. However, to assess the efficiency of agricultural exports, it is important to analyze the value added of exported goods produced in the country. The position of the exporting country in global value chains is derived from the type of agricultural production, which in turn depends on the level of development of the national economy, the availability and breadth of use of modern high technologies. The article examines the concept of the development of world agriculture from the point of view of the formation of global value chains, set out in the report of the UN World Food Organization [1] in comparison with the political decisions of such countries as India and the People’s Republic of China in the development of agricultural and food exports. The paper analyzes the risks associated with the consolidation of developing countries as suppliers of agricultural raw materials, as well as the conditions and action plan that allow the country-exporter of agricultural raw materials to move to higher levels in the global value chains on the world market. This experience should be considered to make comprehensive and effective decisions on the formation of the export policy of agricultural products and food of the Russian Federation, considering the food security of the country.


2016 ◽  
Vol 9 (2) ◽  
pp. 1
Author(s):  
Jaseb Nikfar ◽  
Ali Mohammadi ◽  
Ali Bagheri Dolatabadi ◽  
Alireza Samiee Esfahani

Nowadays the discussion of intellectual schools in the world, especially in the north of Africa is very important for the political analysts. The intellectual roots that existed in these regions from the beginning of independence were more toward the Islam. These roots mostly revealed themselves after the victory of Islamic revolution. The formation of Iran’s Islamic revolution on the top of west and east blocks’ mutuality was a paradigm of general direction of religions and Islamic values for forming the government. This article uses description- analytic method to investigate the effects of Islamic revolution on the Muslim’s intellectual schools in the north of Africa. Two main questions are How and in what direction has the Islamic revolution happening affected the Muslim’s intellectual schools in Libya and Tunisia? Findings of the research shows that with regards to the Muslim’s intellectual backgrounds that before the Islamic revolution existed, in these countries Islamic revolution caused the reinforcement and doubled motivation for these groups. But, yet the reinforcement of the activity of these groups caused their mutuality with the government and increase of violence and insecurity.


2004 ◽  
Vol 3 (1) ◽  
pp. 19-29
Author(s):  
Tomy Kallarackal

The Value Added Tax was first introduced in France in 1954. It was the resultant effort of France and members of the European Economic Community (E.E.C) during the 1950s aimed at the simplification of commodity taxes. Currently more than 130 nations in the world have adopted the VAT system. In the last decade alone over 50 nations have introduced VAT. This includes implementation in China and most recently the addition of Australia to the list of VAT nations. The world over, VAT is payable on both goods and services as they constitute a part of the national GDR Excise duty and sales taxes are merged into the singularity of VAT. No tax is levied on exports with full input tax credit made available. The scheme of taxation adopted by most nations is very simple. The seller of goods and the service provider charge tax on sales, avail input tax credit and pay the difference as VAT to the goVernment treasury. The compliance system in VAT nations is also very simple. There is very less interface between the tax collector and the tax payer. However there are provisions for heavy penalization of VAT defaulters. VAT is administered nationally and is also levied on imports.  


Author(s):  
Cheryl Colopy

From a remote outpost of global warming, a summons crackles over a two-way radio several times a week: . . . Kathmandu, Tsho Rolpa! Babar Mahal, Tsho Rolpa! Kathmandu, Tsho Rolpa! Babar Mahal, Tsho Rolpa! . . . In a little brick building on the lip of a frigid gray lake fifteen thousand feet above sea level, Ram Bahadur Khadka tries to rouse someone at Nepal’s Department of Hydrology and Meteorology in the Babar Mahal district of Kathmandu far below. When he finally succeeds and a voice crackles back to him, he reads off a series of measurements: lake levels, amounts of precipitation. A father and a farmer, Ram Bahadur is up here at this frigid outpost because the world is getting warmer. He and two colleagues rotate duty; usually two of them live here at any given time, in unkempt bachelor quarters near the roof of the world. Mount Everest is three valleys to the east, only about twenty miles as the crow flies. The Tibetan plateau is just over the mountains to the north. The men stay for four months at a stretch before walking down several days to reach a road and board a bus to go home and visit their families. For the past six years each has received five thousand rupees per month from the government—about $70—for his labors. The cold, murky lake some fifty yards away from the post used to be solid ice. Called Tsho Rolpa, it’s at the bottom of the Trakarding Glacier on the border between Tibet and Nepal. The Trakarding has been receding since at least 1960, leaving the lake at its foot. It’s retreating about 200 feet each year. Tsho Rolpa was once just a pond atop the glacier. Now it’s half a kilometer wide and three and a half kilometers long; upward of a hundred million cubic meters of icy water are trapped behind a heap of rock the glacier deposited as it flowed down and then retreated. The Netherlands helped Nepal carve out a trench through that heap of rock to allow some of the lake’s water to drain into the Rolwaling River.


1990 ◽  
Vol 7 (4) ◽  
pp. 158-163
Author(s):  
Jeffrey C. Stier

Abstract Eucalyptus woodpulp (eucapulp) emerged as a significant force in the world market for paper grade pulp approximately a decade ago, and since 1976, production has increased at a compound annual rate of growth exceeding 20%. Recently, the closure of a Wisconsin pulpmill was associated with imports of eucapulp, and fears that a rapid influx of eucapulp would destroy local pulpwood markets spread throughout the northern U.S. forestry community. Eucapulp is an ideal fiber furnish for production of tissue and printing and writing papers, both of which are mainstays of the pulp and paper industry in the North. Eucapulp represents a major structural shift in the world pulp and paper sector, and it is likely to have a continuing impact on the U.S. industry, especially in the North. However, imports of eucapulp and of papers made from eucapulp are expected to increase in the future at an evolutionary pace and not to pose an immediate threat to the regional industry. North. J. Appl. For. 7:158-163, December 1990.


2019 ◽  
Vol 69 (1) ◽  
pp. 81-99 ◽  
Author(s):  
Pawel Folfas ◽  
Beáta Udvari

Nowadays, global production networks (GPN) and global value chains (GVC) play an important role in the world economy intensifying the trade and production networks and resulting in products having value-added in different countries. The analysis of how many intermediate products a country imports in order to produce a product and of how many products a country exports to another country in order to produce new products draws the attention to value-added trade. In the present study, we compare the Hungarian and Polish value-added trade of chemicals and chemical products. We use the OECD-WTO data of value-added trade, which is based on an input-output table. By calculating numerous indices, we reveal that the domestic value-added of chemicals and chemical products in the two countries was relatively low and should be increased by adequate economic policy.


Entropy ◽  
2020 ◽  
Vol 22 (10) ◽  
pp. 1068 ◽  
Author(s):  
Georgios Angelidis ◽  
Evangelos Ioannidis ◽  
Georgios Makris ◽  
Ioannis Antoniou ◽  
Nikos Varsakelis

We investigated competitive conditions in global value chains (GVCs) for a period of fifteen years (2000–2014), focusing on sector structure, countries’ dominance and diversification. For this purpose, we used data from the World Input–Output Database (WIOD) and examined GVCs as weighted directed networks, where countries are the nodes and value added flows are the edges. We compared the in-and out-weighted degree centralization of the sectoral GVC networks in order to detect the most centralized, on the import or export side, respectively (oligopsonies and oligopolies). Moreover, we examined the in- and out-weighted degree centrality and the in- and out-weight entropy in order to determine whether dominant countries are also diversified. The empirical results reveal that diversification (entropy) and dominance (degree) are not correlated. Dominant countries (rich) become more dominant (richer). Diversification is not conditioned by competitiveness.


2016 ◽  
Vol 20 (1) ◽  
pp. 47-73
Author(s):  
Hsing-Chun Lin ◽  
Shih-Hsun Hsu ◽  
Ruey-Wan Liou ◽  
Ching-Cheng Chang

Purpose – The purpose of this paper is to extricate value-added exports in information and communications technology (ICT) industry earned by Taiwan and Korea. Additionally, the authors decompose Taiwan and Korea’s gross exports into various meaningful components. Design/methodology/approach – The authors use the inter-country input-output (ICIO) table which endows with cost structures of industries as well as trade information, facilitating in keeping track of the flow of products and value-added. The ICIO table used in this paper comes from the World Input-Output Database. The authors also use the way Wang et al. (2013) decomposed the intermediate goods exports into various components to provide further insights. Findings – The empirical results indicate that Taiwan and Korea’s ICT export to the world shrink by 47.8 and 40.9 percent when the trades are measured in value-added terms. Taiwan and Korea’s ICT export will also decrease by 75.1 and 57.8 percent. From the viewpoint of value added in trade, the share of value added embodied in Taiwan and Korea’s gross ICT exports continued to decrease and reached 24.9 and 42.2 percent in 2011, while the components of pure double counted terms kept growing in recent years. Originality/value – With global value chains flourishing in recent years, conventional trade statistics not only fails to highlight the vertical specialization among different countries, but also distorts the measurement of a country’s competitiveness. This paper extricates value-added exports in ICT industry earned by Taiwan and Korea and bring into focus the importance of trade in value added.


2020 ◽  
Vol 1 (1) ◽  
pp. 1-12
Author(s):  
Ananta Raj Dahal

This paper examines the role of Value Added Tax (VAT) in total tax of Nepal. Tax is the main sources of government revenue. There are different kinds of tax systems used in the world. The concept of VAT had been introduced in 1919 A D from Germany as a new concept of indirect tax system of the world. VAT system have introduced from 1995 A D in Nepal. The specific objectives are to analyse the trend of VAT and to examine the correlation between VAT with total revenue and total tax revenue in Nepal. This study is based on secondary data, which are incorporated from the Ministry of Finance and other related government as well as non-government organizations. Both analytical and descriptive statistics are applied as methods in this study. At the process of data analysis some statistical tools like regression, correlation, etc. are used. The study shows that VAT has significant percentage in total revenue and total tax revenue in Nepal. There are more than 99 present variations due to VAT in total revenue, total tax revenue and indirect tax revenue. All these relationship are significant as r >6 PEr everywhere. Thus, VAT has significant contribution in government revenue of Nepal. But the system of VAT must be improved to increase its effectiveness through the government policy level and increase awareness tax payers about baling system of VAT.


2021 ◽  
pp. 102452942110454
Author(s):  
Mateo Crossa

Contrary to the triumphalist rhetoric that describes the automotive industry as a lever for both regional development in North America and industrial upgrading in Mexico, this article argues that the formation of the Mexico–U.S. automotive complex has instead been consolidated on the basis of longstanding processes of uneven regional development. To make this argument, the paper examines how global economic restructuring, trade policies, domestic economic development processes, transnational firm decision making and the maintenance of the geopolitical border have reproduced extreme wage differences between the United States and Mexico, resulting in the creation of a regional automotive sector that is both highly integrated and highly unequal. In this scenario, both nations are home to profoundly different industrial landscapes: the U.S. hosts the highest value-added links of the production chain, monopolizing processes of innovation and scientific and technological knowledge production, while in contrast, Mexico manufactures the most labour intense and lowest value-added links of the automotive production chain. From this perspective, the Mexican economy can be essentially understood as an export manufacturing platform which derives its ‘competitiveness’ from the aggressive industry maintenance of low wages.


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