Asymmetric oligopoly and foreign direct investment: implications for host-country tax-setting

We present a duopoly model with heterogeneous firms that vary in cost-efficiency, each of which can choose to serve a foreign market by either exporting or local production. We do so to analyse the effects of a host-country corporate profit tax on both the scale and composition of FDI, and find that: strategic interaction between oligopolistic firms provides for a pattern of FDI that favours cost-inefficiency to the detriment of host-country welfare; and the host-country tax rate can be optimally used to avoid such patterns of FDI and instead promote direct investment by a relatively cost-efficient firm.

Using seasonal hindcasts to understand the origin of the equatorial cold tongue bias in CGCMs and its impact on ENSO

The cold equatorial SST bias in the tropical Pacific that is persistent in many coupled OAGCMs severely impacts the fidelity of the simulated climate and variability in this key region, such as the ENSO phenomenon. The classical bias analysis in these models usually concentrates on multi-decadal to centennial time series needed to obtain statistically robust features. Yet, this strategy cannot fully explain how the models errors were generated in the first place. Here, we use seasonal re-forecasts (hindcasts) to track back the origin of this cold bias. As such hindcasts are initialized close to observations, the transient drift leading to the cold bias can be analyzed to distinguish pre-existing errors from errors responding to initial ones. A time sequence of processes involved in the advent of the final mean state errors can then be proposed. We apply this strategy to the ENSEMBLES-FP6 project multi-model hindcasts of the last decades. Four of the five AOGCMs develop a persistent equatorial cold tongue bias within a few months. The associated systematic errors are first assessed separately for the warm and cold ENSO phases. We find that the models are able to reproduce either El Niño or La Niña close to observations, but not both. ENSO composites then show that the spurious equatorial cooling is maximum for El Niño years for the February and August start dates. For these events and at this time of the year, zonal wind errors in the equatorial Pacific are present from the beginning of the simulation and are hypothesized to be at the origin of the equatorial cold bias, generating too strong upwelling conditions. The systematic underestimation of the mixed layer depth in several models can also amplify the growth of the SST bias. The seminal role of these zonal wind errors is further demonstrated by carrying out ocean-only experiments forced by the AOCGCMs daily 10-meter wind. In a case study, we show that for several models, this forcing is sufficient to reproduce the main SST error patterns seen after 1 month in the AOCGCM hindcasts.

A new framework for understanding inequalities between expatriates and host country nationals

An interdisciplinary theoretical framework is proposed for analysing justice in global working conditions. In addition to gender and race as popular criteria to identify disadvantaged groups in organizations, in multinational corporations (MNCs) local employees (i.e. host country nationals (HCNs) working in foreign subsidiaries) deserve special attention. Their working conditions are often substantially worse than those of expatriates (i.e. parent country nationals temporarily assigned to a foreign subsidiary). Although a number of reasons have been put forward to justify such inequalities—usually with efficiency goals in mind—recent studies have used equity theory to question the extent to which they are perceived as fair by HCNs. However, since perceptual equity theory has limitations, this study develops an alternative and non-perceptual framework for analysing such inequalities. Employment discrimination theory and elements of Rawls’s ‘Theory of Justice’ are the theoretical pillars of this framework. This article discusses the advantages of this approach for MNCs and identifies some expatriation practices that are fair according to our non-perceptual justice standards, whilst also reasonably (if not highly) efficient.

Influence of geographical origin, host animal and stx gene on the virulence characteristics of Escherichia coli O26 strains

The influence of geographical origin, host animal and presence of the stx gene on the virulence of Escherichia coli O26 strains from ruminants was determined in this study. A clear association was found between the virulence profile and geographical origin of Shiga-toxigenic E. coli (STEC) O26 strains, with UK STEC O26 strains harbouring virtually identical profiles, whilst central European strains showed considerable heterogeneity in plasmid-encoded genes. The former group were also more likely to be non-motile and katP gene positive. Comparison of UK STEC and atypical enteropathogenic E. coli (aEPEC O26 strains showed that the presence of the stx1 gene was positively correlated with the presence of espP and katP genes and negatively associated with the presence of the yagP-yagT region and with rhamnose fermentation. In contrast to the uniform profiles of STEC O26 strains from ruminants in the UK, aEPEC O26 strains of bovine and ovine origin showed diverse profiles both within and between groups, and could not be separated into discrete groups. These results indicate that the characteristics of UK O26 strains from ruminants are distinct from those of O26 strains from ruminants and humans in other regions in central Europe. Such differences are expected to influence the zoonotic potential of this pathogen and the subsequent incidence of O26-associated human disease.

The effectiveness of botanic garden collections in supporting plant conservation: a European case study

Europe has the greatest concentration of botanic gardens in the world, they cultivate extensive collections of plants that include samples of European threatened plant species. This study looks at the effectiveness of these collections in supporting species conservation. A three part study is presented: (1) the results of a survey and assessment of threatened plants in botanic gardens, as defined by the Bern Convention; (2) case studies illustrating current issues in the ex situ management of European threatened plant species; and (3) presentation of policy recommendations on further improving botanic garden contributions to European plant conservation. The survey indicated that of 119 European botanic gardens in 29 European countries, 105 are cultivating 308 of the 573 threatened plant species listed by the Bern Convention. The survey identified 25 botanic gardens in 14 countries undertaking 51 conservation projects focused on 27 Bern listed species. In particular this survey has established that the majority of taxa are held in a small number of collections, dominated by non-wild origin accessions, and are not adequately documented. The majority of specimens in botanic gardens are cultivated out of the range country and not contributing to a specific conservation project. We review the genetic representation and documentation of origin in collections. Existing plant collections contain representatives of populations, now lost in the wild and maintain samples of at least nine European plant taxa identified as 'Extinct in the Wild'. However, inadequate standards of record keeping has compromised the conservation value of many collections. We highlight the dangers of hybridisation and disease in ex situ collections. The results suggest that botanic garden collections are skewed towards horticulturally robust and ornamental species and do not fully reflect priorities as defined by the Bern Convention. Recognising the limitations of traditional botanic garden collections we propose that botanic gardens more effectively utilise their two core competencies, namely scientific horticulture and public display and interpretation. The unique horticultural skills resident in European botanic gardens could be more effectively utilised through the application of horticulture to the management of wild populations.

'A hideously difficult country': British propaganda to France in the early Cold War

This article examines British propaganda efforts in the early Cold War in the light of a developing relationship in which the senders' own strategies were to be modified and challenged.The article argues that initiatives to broadcast propaganda from Britain into France via the BBC operated within a broader and developing information policy context. Broadcasting from outside the country through the BBC was supplemented with attempts by British personnel stationed in France to embed positive messages directly within the contemporary French media. By 1950 however, the Britsih propaganda initiative seemed inappropriate and outmoded, taken over by the French themselves and by a British desire to prioritise countries outside Western Europe.

Ethnic differences in beta-cell function, dietary intake and expression of the metabolic syndrome among UK adults of south Asian, black African-Caribbean and white-European origin at high risk of metabolic syndrome

A cross-sectional analysis of ethnic differences in dietary intake, insulin sensitivity and beta-cell function, using the intravenous glucose tolerance test (IVGTT), was conducted on 497 healthy adult participants of the ‘Reading, Imperial, Surrey, Cambridge, and Kings’ (RISCK) study. Insulin sensitivity (Si) was significantly lower in African-Caribbean (AC) and South Asian (SA) participants [IVGTT-Si; AC: 2.13 vs SA: 2.25 vs white-European (WE): 2.84 (×10−4 mL µU min)2, p < 0.001]. AC participants had a higher prevalence of anti-hypertensive therapy (AC: 19.7% vs SA: 7.5%), the most cardioprotective lipid profile [total:high-density lipoprotein (HDL); AC: 3.52 vs SA: 4.08 vs WE: 3.83, p = 0.03] and more pronounced hyperinsulinaemia [IVGTT–acute insulin response (AIR)] [AC: 575 vs SA: 428 vs WE: 344 mL/µU/min)2, p = 0.002], specifically in female participants. Intake of saturated fat and carbohydrate was lower and higher in AC (10.9% and 50.4%) and SA (11.1% and 52.3%), respectively, compared to WE (13.6% and 43.8%, p < 0.001). Insulin resistance in ACs is characterised by ‘normal’ lipid profiles but high rates of hypertension and pronounced hyperinsulinaemia.

Origin of regional climate differences: role of boundary conditions and model formulation in two GCMs

Model differences in projections of extratropical regional climate change due to increasing greenhouse gases are investigated using two atmospheric general circulation models (AGCMs): ECHAM4 (Max Planck Institute, version 4) and CCM3 (National Center for Atmospheric Research Community Climate Model version 3). Sea-surface temperature (SST) fields calculated from observations and coupled versions of the two models are used to force each AGCM in experiments based on time-slice methodology. Results from the forced AGCMs are then compared to coupled model results from the Coupled Model Intercomparison Project 2 (CMIP2) database. The time-slice methodology is verified by showing that the response of each model to doubled CO2 and SST forcing from the CMIP2 experiments is consistent with the results of the coupled GCMs. The differences in the responses of the models are attributed to (1) the different tropical SST warmings in the coupled simulations and (2) the different atmospheric model responses to the same tropical SST warmings. Both are found to have important contributions to differences in implied Northern Hemisphere (NH) winter extratropical regional 500 mb height and tropical precipitation climate changes. Forced teleconnection patterns from tropical SST differences are primarily responsible for sensitivity differences in the extratropical North Pacific, but have relatively little impact on the North Atlantic. There are also significant differences in the extratropical response of the models to the same tropical SST anomalies due to differences in numerical and physical parameterizations. Differences due to parameterizations dominate in the North Atlantic. Differences in the control climates of the two coupled models from the current climate, in particular for the coupled model containing CCM3, are also demonstrated to be important in leading to differences in extratropical regional sensitivity.

Maternally expressed gene1 is a novel maize endosperm transfer cell-specific gene with a maternal parent-of-origin pattern of expression

Growth of the maize (Zea mays) endosperm is tightly regulated by maternal zygotic and sporophytic genes, some of which are subject to a parent-of-origin effect. We report here a novel gene, maternally expressed gene1 (meg1), which shows a maternal parent-of-origin expression pattern during early stages of endosperm development but biallelic expression at later stages. Interestingly, a stable reporter fusion containing the meg1 promoter exhibits a similar pattern of expression. meg1 is exclusively expressed in the basal transfer region of the endosperm. Further, we show that the putatively processed MEG1 protein is glycosylated and subsequently localized to the labyrinthine ingrowths of the transfer cell walls. Hence, the discovery of a parent-of-origin gene expressed solely in the basal transfer region opens the door to epigenetic mechanisms operating in the endosperm to regulate certain aspects of nutrient trafficking from the maternal tissue into the developing seed.

Solar origin of heliospheric magnetic field inversions: evidence for coronal loop opening within pseudostreamers

The orientation of the heliospheric magnetic field (HMF) in near‒Earth space is generally a good indicator of the polarity of HMF foot points at the photosphere. There are times, however, when the HMF folds back on itself (is inverted), as indicated by suprathermal electrons locally moving sunward, even though they must ultimately be carrying the heat flux away from the Sun. Analysis of the near‒Earth solar wind during the period 1998–2011 reveals that inverted HMF is present approximately 5.5% of the time and is generally associated with slow, dense solar wind and relatively weak HMF intensity. Inverted HMF is mapped to the coronal source surface, where a new method is used to estimate coronal structure from the potential‒field source‒surface model. We find a strong association with bipolar streamers containing the heliospheric current sheet, as expected, but also with unipolar or pseudostreamers, which contain no current sheet. Because large‒scale inverted HMF is a widely accepted signature of interchange reconnection at the Sun, this finding provides strong evidence for models of the slow solar wind which involve coronal loop opening by reconnection within pseudostreamer belts as well as the bipolar streamer belt. Occurrence rates of bipolar‒ and pseudostreamers suggest that they are equally likely to result in inverted HMF and, therefore, presumably undergo interchange reconnection at approximately the same rate. Given the different magnetic topologies involved, this suggests the rate of reconnection is set externally, possibly by the differential rotation rate which governs the circulation of open solar flux.

Cross-country effects of regulatory capital arbitrage

One reason for the recent asset price bubbles in many developed countries could be regulatory capital arbitrage. Regulatory and legal changes can help traditional banks to move their assets off their balance sheets into the lightly regulated shadows and thus enable regulatory arbitrage through the securitized sector. This paper adopts a global vector autoregression (GVAR) methodology to assess the effects of regulatory capital arbitrage on equity prices, house prices and economic activity across 11 OECD countries/ regions. A counterfactual experiment disentangles the effects of regulatory arbitrage following a change in the net capital rule for investment banks in April 2004 and the adoption of the Basel II Accord in June 2004. The results provide evidence for the existence of an international finance multiplier, with about half of the countries overshooting U.S. impulse responses. The counterfactual shows that regulatory arbitrage via the U.S. securitized sector may enhance the cross-country reallocation of capital from housing markets towards equity markets.