Causes of rigidity in SMEs' export commencement decision

Today, small-medium sized enterprises (SMEs) collectively contribute to the largest percentage of job creation in OECD countries. SMEs have become increasingly international since the turn of the century despite being smaller in size in comparison to large multinational firms, and notably, exporting is the most favoured mode of international market entry utilised by SMEs in their internationalisation strategy. Governments around the world have acknowledged the importance of export promotion and have employed policies that are targeted at increasing the export activity of SMEs. However, in many countries, the involvement of SMEs in export operations remains rather low. Within Australia, for example, only about one-third of local SMEs are exporting and this raises an important question as to why there is such a huge percentage of non-exporters. Much scholarly research that focuses on this problem has concentrated on the broad concept of 'export barriers' that act as obstacles to a firm's export development. This paper takes a different approach to previous studies and proposes that a firm's resistance to commence exporting can be better understood through an analysis of the behavioural decision process during its pre-export state. Using a sample of Australian SMEs, the factors that are important in preventing a firm’s initial export commencement decision are categorised and discussed through the use of factor analysis.

Using global formulary apportionment for international profit allocation: The case of Indonesia's mining industry

My thesis examined an alternative approach, referred to as the unitary taxation approach to the allocation of profit, which arises from the notion that as a multinational group exists as a single economic entity, it should be taxed as one taxable unit. The plausibility of a unitary taxation regime achieving international acceptance and agreement is highly contestable due to its implementation issues, and economic and political feasibility. Using a case-study approach focusing on Freeport-McMoRan and Rio Tinto's mining operations in Indonesia, this thesis compares both tax regimes against the criteria for a good tax system - equity, efficiency, neutrality and simplicity. This thesis evaluates key issues that arise when implementing a unitary taxation approach with formulary apportionment based on the context of mining multinational firms in Indonesia.

Essays on the Determinants of International Portfolio Investments

Investors significantly overweight domestic assets in their portfolios. This behavior which is commonly called “home bias” contradicts the prescriptions of portfolio theory. This thesis explores potential reasons for the “home bias” by examining the characteristics of the investing and the target countries and features of the interaction between them. A common theme of the four essays is a focus on the importance of information about foreign markets in explaining the share of these markets in investors’ portfolios. The results indicate that the size of the equity ownership in another country strongly relates to the distance to the financial capital of that country, and to trade in goods with and direct investments (FDI) to that country. The first essay empirically investigates the relationship between trade in real goods and portfolio investments. Overall, the evidence indicates a substantial role for trade in reducing the information cost relating to portfolio investments. The second essay examines the implications of the launch of the European Monetary Union (EMU) on international portfolio investments. The evidence on the allocation of Finnish international portfolio investments is more consistent with an information-based than a diversification motive explanation. The third essay employs new data for a large number of countries and further explores the role of trade on international portfolio investments. The results indicate that trade provides important information especially on firms in countries in which the corporate governance structure and the information environment of firms generate less reliable information. The fourth essay examines the relationship between direct investments (FDI) and portfolio investments. In contrast to the predications of portfolio theory, it provides evidence that FDI is a complement rather than a substitute for portfolio investments.

The Impact of FDI on International Portfolio Investments

Some empirical research has argued that part of the reason for the observed "home bias" is that investors are able to indirectly achieve internationally diversified portfolios via domestically listed multinational firms. Another branch of this research attributes the "home bias" and country allocations to more deeply rooted informational causes. Using a four-year annual panel of Finnish international portfolios and Foreign Direct Investments in twenty-five countries, I provide evidence consistent with an information asymmetry explanation

Getting to the Real Story: What Vietnamese business people wish foreigners understood about doing business in emerging and transition countries like Vietnam – BEFORE they start

Knowledge sharing typically examines organizational transfer of knowledge, often from headquarters to subsidiaries, from developed country sites to emerging country sites, or from host to local employees. Yes, recent research, such as Prahalad’s Bottom of the Pyramid, raises the question of reverse transfer of knowledge, or whether knowledge could and should be transferred from local sites to home country sites within an organization. As several emerging economies build their capabilities in knowledge, research and development, marketing, and the like, it only makes sense to consider what type of knowledge and how to transfer it in reverse or bi-directional manners. This paper takes one step back in the process. Rather than focusing on what knowledge transfer may make sense within an organization, we consider what types of knowledge are important for foreigners to know at the initial stages of engagement abroad as they consider whether to do business in an emerging country.

L'évolution de la réglementation internationale des investissements directs étrangers dans les Amériques : vers de nouvelles perspectives ?

"Mémoire présenté à la Faculté des études supérieures en vue de l'obtention du grade de LL.M. Droit Dans le cadre du programme de Maîtrise en droit(LL.M.) 2-325-1-0 en option recherche et droit des affaires"

La société civile globale: une «chimère insaisissable» à l'épreuve de la reconnaissance juridique

La prolifération des acteurs non étatiques, favorisée par la mondialisation, est un phénomène marquant de notre histoire contemporaine. Rassemblés sous le vocable de «société civile», ils ont contribué à créer un foisonnement de normes sur le plan international allant, pour certains commentateurs, jusqu'à concurrencer l'État sur sa capacité de dire le droit. Parmi ces acteurs privés, les organisations non gouvernementales (ONG) et les entreprises multinationales jouent un rôle prépondérant. Notre imaginaire collectif oppose cependant trop souvent l'ONG, symbole du désintéressement, à la multinationale assoiffée de profit. Le présent mémoire vise à relativiser ce constat manichéen et simplificateur. En analysant, dans une perspective de droit international, les moyens d'action des ONG et des multinationales, on se rend compte que les passerelles entre les deux «mondes» sont en réalité nombreuses. ONG et multinationales se retrouvent d'ailleurs dans leur aspiration commune à être reconnues formellement sur la scène internationale. L'opportunité d'une reconnaissance juridique de la société civile sera discutée.

La société civile globale Une « chimère insaisissable » à l'épreuve de la reconnaissance juridique

La prolifération des acteurs non étatiques, favorisée par la mondialisation, est un phénomène marquant de notre histoire contemporaine. Rassemblés sous le vocable de « société civile », ils ont contribué à créer un foisonnement de normes sur le plan international allant, pour certains commentateurs, jusqu’à concurrencer l’État sur sa capacité de dire le droit. Parmi ces acteurs privés, les organisations non gouvernementales (ONG) et les entreprises multinationales jouent un rôle prépondérant. Notre imaginaire collectif oppose cependant trop souvent l’ONG, symbole du désintéressement, à la multinationale assoiffée de profit. Le présent mémoire vise à relativiser ce constat manichéen et simplificateur. En analysant, dans une perspective de droit international, les moyens d’action des ONG et des multinationales, on se rend compte que les passerelles entre les deux « mondes » sont en réalité nombreuses. ONG et multinationales se retrouvent d’ailleurs dans leur aspiration commune à être reconnues formellement sur la scène internationale. L’opportunité d’une reconnaissance juridique de la société civile sera discutée.

À travers les expériences canadiennes en matière d’industries minières, les leçons à tirer pour Madagascar pour bâtir une croissance économique sans grande répercussion sur l’environnement.

L’essor économique se fait au gré de l’environnement et du développement social de la population. Le concept de « développement durable » a été discuté pour la première fois lors du Sommet de la terre à Rio de Janeiro (Brésil) en 1992. Ce concept consiste à concilier la protection de l’environnement et la croissance économique. La compagnie minière canadienne Osisko met en œuvre le projet aurifère « Canadian Malartic » au Québec. Ce projet suscite des controverses au sein de la population locale. En effet, elle craigne des effets néfastes de cette exploitation d’or sur leur environnement et leur bien-être. Analogiquement, le gouvernement malagasy a accordé l’exploitation du site Ambatovy pour l’extraction des minerais de nickel et de cobalt à des firmes multinationales. Ce site minier est situé au cœur de la forêt humide du versant Est de Madagascar, qui figure dans la liste du patrimoine naturel mondial en péril selon l’Organisation des Nations Unies pour l’Éducation, la Science et la Culture (UNESCO). Les gouvernements québécois et malagasy veulent harmoniser les règles juridiques de la protection environnementale avec celles de l’exploitation des ressources naturelles pour accomplir leurs « développements durables ». Pour ce faire, ils devraient favoriser la prise de décision décentralisée et la collaboration de toutes les parties intéressées, surtout lors de l’examen de l’évaluation environnementale des projets miniers. Ils devraient s’assurer aussi de l’application des engagements social et environnemental des entreprises minières durant l’exploitation. Enfin, ces gouvernements devraient renforcer l’exigence de l’assainissement des sites miniers à la fin de l’exploitation minière.

El Outsourcing en la dinámica de sistemas hacia mercados extranjeros

Este trabajo recopila literatura académica relevante sobre estrategias de entrada y metodologías para la toma de decisión sobre la contratación de servicios de Outsourcing para el caso de empresas que planean expandirse hacia mercados extranjeros. La manera en que una empresa planifica su entrada a un mercado extranjero, y realiza la consideración y evaluación de información relevante y el diseño de la estrategia, determina el éxito o no de la misma. De otro lado, las metodologías consideradas se concentran en el nivel estratégico de la pirámide organizacional. Se parte de métodos simples para llegar a aquellos basados en la Teoría de Decisión Multicriterio, tanto individuales como híbridos. Finalmente, se presenta la Dinámica de Sistemas como herramienta valiosa en el proceso, por cuanto puede combinarse con métodos multicriterio.

Productivity and the international firm: dissecting heterogeneity

Higher productivity of multinational firms and exporters has been widely documented in the literature, but the sources of this heterogeneity are still a black box. Using an original dataset on Italian firms, we show that higher total factor productivity of international firms can be to some extent explained by higher R&D intensity and managerial capabilities. However, our results suggest that heterogeneity is more in the slope than in the constant of the production function. In particular, allowing international firms to have different return to labour and capital inputs, we are able to account for their entire productivity premium. This has implications for both labour and capital market reforms.

Thai hedging practices post-Asian financial crisis

This paper provides survey evidence captured from a sample of 113 respondents to a 2008 questionnaire sent to 344 companies in Thailand. The study examines Thai hedging practices following the Asian Financial Crisis of 1997. Thai companies, like their international counterparts, rely predominantly on matching and forward contracts to hedge transaction exposure. Thai companies, however, appear to be less rigorous when it comes to internal control and supervision of derivative activity. It is recommended that Thai companies improve their risk management practices by putting into place a documented hedging policy, which includes a requirement that senior staff be actively engaged in the risk management activities of the firm.