Globalisation and the technology gap: Regional and time evidence

This chapter examines the relationship between globalisation and technological progress. It computes an annual and country specific measure of technological gap, the technology ratio (TGR), using a recently proposed method known as metafrontiers. The TGR is measured as the distance from a group frontier to the global (or meta) frontier. The TGRs provide a measure to compare technological capability across countries. The ranking obtained from the metafrontiers method is first compared to other methods based on the direct measure of patents, science articles, schooling etc. The TGRs are then related to levels of trade openness and inbound and outbound foreign direct investment within regions and overtime in an effort to identify the relationship between technological gap and outward orientation.

Motivation of Chinese investment in Vietnam

China attracted a record of US$52.7×109 in foreign direct investment (FDI) in the year 2002, surpassing the United States to become the world’s largest FDI recipient. China’s success in attracting FDI has received significant attention from academics. Several theoretical approaches have been developed to explain the determinants of FDI in China. However, it seems to be ignored that China has also become a growing provider of significant FDI to the rest the world. According to United Nations Conference on Trade and Development (UNCTAD)’s 2004 report, as a developing country, replacing Japan, China has made the list of the expected top five home countries worldwide for the first time in terms of geographical coverage (2004–2005). Vietnam is second largest market and another emerging transition tiger in Southeast Asia. Both China and Vietnam were and are experiencing transitions from centrally planned economy to free market economy. This paper, therefore, attempts to explore the development of Chinese investment in Vietnam, analysing the main motives for, and characteristics of, Chinese Multinational Enterprises’ (MNEs) investment in Vietnam.

Positioning terrorism in management and marketing: Research propositions

Terrorism poses both direct and indirect threats to the operations of the firm. It represents a market imperfection that increases transaction costs and creates barriers to the free flow of goods, affecting potential gains that would occur in the presence of unhindered exchange. Terrorism reflects the risk or actual encounter of violent acts, whose goal is to engender fear, coercion, or intimidation. We investigate terrorism and its association with marketing strategy and operations. Key concepts on terrorism are reviewed and a collection of propositions is offered. We highlight the pivotal roles of sourcing, production, distribution, pricing, communications, and general business strategy as functions influenced by, or capable of influencing, terrorism. Lastly, we offer managerial implications, as well as directions and guidelines for future research.

The price elasticity of the Euro to movements in foreign reserves through European Central Bank intevention

The Euro has been used as the largest weighting element in a basket of currencies for forex arrangements adopted by several Central European countries outside the European Union (EU). The paper uses a new time-series approach to examine the relationship between the Euro exchange rate and the level of foreign reserves. It employs Zero-no-zero (ZNZ) patterned vector error-correction (VECM) modelling to investigate Granger causal relations among foreign reserves, the European Monetary Union money supply and the Euro exchange rate. The findings confirm that foreign reserves may influence movements in the Euro's exchange rate. Further, ZNZ patterned VECM modelling with exogenous variables is used to estimate the amount of foreign reserves currently required in order to again achieve a targetted Euro exchange rate

Relative accuracy and predictive ability of direct valuation methods, price to aggregate earnings method and a hybrid approach

In this paper, we assess the relative performance of the direct valuation method and industry multiplier models using 41 435 firm-quarter Value Line observations over an 11 year (1990–2000) period. Results from both pricingerror and return-prediction analyses indicate that direct valuation yields lower percentage pricing errors and greater return prediction ability than the forward price to aggregated forecasted earnings multiplier model. However, a simple hybrid combination of these two methods leads to more accurate intrinsic value estimates, compared to either method used in isolation. It would appear that fundamental analysis could benefit from using one approach as a check on the other.

Accommodative communication as a mediator to the negative effects of cultural identity on perceptions of foreign management practices and perceptions of organisational climate

This Study examines whether cultural identity has an impact on perceptions of foreign management practices and perceptions of organisational climate. Based on social identity theory as a conceptual framework, it is assumed that the salience of cultural identity leads to in-group bias in interpreting organisational events. This study also examines whether managers' accommodative communication behaviour mediates these relationships. In a multinational organisation, employees see the foreign company as a symbol, and the person that deals with them in everyday working relationships in the organisation is their direct leader. It is argued that the salience of cultural identity wiU depend on employees' perceptions of the way managers attach meaning to foreign managerial practices and communicate it to them. Interaction with managers who create a distance with their employees and who fail to Usten to what employees need may be a socially appropriate way to invoke the salience of cultural identity in the working relationship. The participants were 206 Indonesian employees from three multinational organisations. Using a questionnaire, this study shows that participants with strong cultural identity had more negative perceptions of foreign management practices and organisational climate. Furthermore, this study indicates that managers' accommodative communication behaviour mediated these relationships.

Nanocomposite Nafion-Silica membranes for direct methanol fuel cells

Commercially available proton exchange membranes such as Nafion do not meet the requirements for high power density direct methanol fuel cells, partly due to their high methanol permeability. The aim of this work is to develop a new class of high-proton conductivity membranes, with thermal and mechanical stability similar to Nafion and reduced methanol permeability. Nanocomposite membranes were produced by the in-situ sol-gel synthesis of silicon dioxide particles in preformed Nafion membranes. Microstructural modification of Nafion membranes with silica nanoparticles was shown in this work to reduce methanol crossover from 7.48x10-6 cm2s^-1 for pure Nafion® to 2.86 x10-6 cm2s^-1 for nanocomposite nafion membranes (Methanol 50% (v/v) solution, 75 degrees C). Best results were achieved with a silica composition of 2.6% (w/w). We propose that silica inhibits the conduction of methanol through Nafion by blocking sites necessary for methanol diffusion through the polymer electrolyte membrane. Effects of surface chemistry, nanoparticle formation and interactions with Nafion matrix are further addressed.

Tourism as a contributor to development in Sri Lanka: An overview and a case study

General background is provided on the potential of tourism growth to contribute to economic development, paying particular attention to the experience of Sri Lanka. An overview of trends in inbound tourism to Sri Lanka is presented with particular consideration being given to its number of inbound tourist arrivals. Sri Lanka’s comparative position in international tourism markets, the composition of its tourist arrivals by area of origin, the extent of foreign earnings by the Sri Lankan tourism industry and variations in the amount of these earnings, and the extent of employment generation by this industry are examined. Regional aspects of the tourism industry in Sri Lanka are given special consideration, and this is followed by a report on the regional economic impact of tourism of Pinnawala Elephant Orphanage. This major tourist attraction near the edge of the Western Highlands of Sri Lanka is shown to make a significant contribution to economic decentralisation. A general discussion follows of tourism development in the Sri Lankan context. The main factors that have hindered tourism growth in Sri Lanka and its decentralisation are considered. Indications are that major impediment posed by civil disturbance and terrorism is at an end in Sri Lanka.