Culture and trade

This investigation emphasises the significant role socio-cultural considerations play in Australia's education sector initiatives in the Middle East, and the direct impact this has on wider Australian-Middle Eastern trade and strategic relations. In order to enhance these relations, there is an urgent need for Australia to develop a more sophisticated policy of engagement that moves away from historical and contemporary misconceptions.

Vulnerability, trade, financial flows and state failure in small island developing states

Small Island Developing States (SIDS) are very different to other developing countries. Relative to GDP they have the highest levels of foreign trade and aid receipts of all developing countries. Remittances from abroad are a far more important source of income for SIDS, and some depend very heavily on export revenues. The quality of governance varies tremendously among SIDS, they are over-represented among countries classified as fragile states and many are prone to state failure. These and other factors combine to make SIDS highly vulnerable to external economic shocks. Achieving development in SIDS is as a consequence an especially complex task that requires an understanding of the roles played by aid, trade, remittances and governance in these countries. This paper looks at these issues, along with providing various stylised facts about SIDS. In so doing it serves as a background and broad contextual setting for the papers that follow in this Special Issue on 'Fragility and Development in Small Island Developing States'.

Consideration of selflessness and self-interest in outsourcing decisions

Purpose – The paper aims to discuss the need to balance selflessness and self-interest issues in outsourcing decisions. This discussion is timely given the tensions that currently exist between those who want off-shore outsourcing to continue as a means for increasing international trade, and those who only want to conduct business on-shore.

Design/methodology/approach – A conceptual approach has been taken in this paper in order to highlight key considerations for ethical decision-making with respect to off-shore outsourcing.

Findings – Considerations of selflessness and self-interest are embedded in outsourcing decisions. It is recommended that a balance between making profits and fulfilling social responsibilities is required, ideally, at each stage of decision-making. Hence, managers should think critically about the reasons behind off-shore outsourcing decisions, the process of arriving at decisions, and the impact of their decisions on stakeholders.

Research limitations/implications – This is a conceptual paper and further empirical data to validate the stages of decision-making framework are required.

Practical implications – Failure to take into account the selflessness and self-interest outcomes of off-shore outsourcing could potentially off-set strategic gains by leading to negative media publicity for a company.

Social implications – Ethical considerations as part of outsourcing decisions should result in a transparent, fair and more humane working environment for both the host and the home country representatives involved in the process.

Originality/value – This paper presents an original framework of selflessness and self-interest considerations when making off-shore outsourcing decisions. Both Eastern and Western business perspectives have been incorporated as part of the decision-making framework.

Social competence following pediatric stroke: contributions of brain insult and family environment

Limited information is available regarding predictors of psychosocial difficulties in children following stroke. This study aimed to (i) compare social competence of children with arterial ischemic stroke (AIS) to those with chronic illness and healthy controls and (ii) investigate the contribution of stroke pathology, neurological outcome and environment. Thirty-six children with AIS > 12 months prior to recruitment were compared with children with chronic illness (asthma) (n = 15) and healthy controls (n = 43). Children underwent intellectual assessment, and children and parents completed questionnaires to assess social competence. Children with AIS underwent MRI scan and neurological evaluation. Child AIS was associated with poorer social adjustment and participation, and children with AIS were rated as having more social problems than controls. Lesion volume was not associated with social outcome, but subcortical stroke was linked to reduced social participation and younger stroke onset predicted better social interaction and higher self-esteem. Family function was the sole predictor of social adjustment. Findings highlight the risk of social impairment following pediatric stroke, with both stroke and environmental factors influencing children's social competence in the chronic stages of recovery. They indicate the potential for intervention targeting support at the family level.

Terms of trade shocks and monetary policy in India

Central banks in emerging market economies often grapple with understanding the monetary policy response to an inter-sectoral terms of trade shock. To address this, we develop a three sector closed economy NK-DSGE model calibrated to India. Our framework can be generalized to other emerging markets and developing economies. The model is characterized by a manufacturing sector and an agricultural sector. The agricultural sector is disaggregated into a grain and vegetable sector. The government procures grain from the grain market and stores it. We show that the procurement of grain leads to higher inflation, a change in the sectoral terms of trade, and a positive output gap because of a change in the sectoral allocation of labor. We compare the transmission of a single period positive procurement shock with a single period negative productivity shock and discuss the implications of such shocks for monetary policy setting. Our paper contributes to a growing literature on monetary policy in India and other emerging market economies.