Knowledge that Transforms

Share analysis was Performed for the periods of 1967-1972 and 1972-1977 to determine the source of the slow rate of growth of American exports vis-a-vis exports of all members of the Organization for Economic Cooperation and Development. Although share analysis is subject to several theoretical and practical limitations, the conclusions indicated clearly that, during these periods, the relatively slow rate of increase for American exports was attributable mainly to a loss of market share rather than to export structure or mix. So it may be concluded that if a faster rate of growth for America exports is to be realized, the united States should continue efforts to raise the competitiveness of American goods in international market and—perhaps more importantly—to provide special incentives to firms that increase export sales in preference to alternative forms of business expansion.

Canadian financial reporting followed United States financial reporting consistently until the middle 1960s. Since that time, Canadian financial reporting has been increasingly diverging from that in the United States. This paper illustrates these differences and examines empirically the effects of supplying divergent information to Canadian and United States investors. A methodology that associates market with accounting risk measures which previously has been used domestically is extended to the international context. The implications for United States investors in Canada and the impact on the future of development of financial reporting for foreign investors are examined.

Working capital literature is rather limited and the process of managing short‐term resources is not understood well by academicians. In contrast, corporate managers are continuously involved in the working capital decision-making process, but their perspective is limited to the practices within their firm. In order to fill this gap in the working capital literature, a study of management perceptions of the working capital process was undertaken. A survey was used to collect the information from the sample of marketing, production, and financial executives in large corporations in Belgium, France, India, and the United States. The study intercepts management ranking of working capital objectives and indicates the need to improve finacial planning models to include explicitly short–run objectives; further, predictability of cash inflows and outflows is examined and the potential factors affecting the predictability are evaluated. Finally, this study examines management perceptions of long-range objectives in order to provide a proper perspective to the short-run financial planning.

This paper addresses key aspects of commodity bundling decisions in business enterprises both in general and as they relate to the International Tourism industry in particular. The considerable importance and complexity of bundle mix and bundle pricing decisions on the transportation, sightseeing, and resort level of Tourism are discussed. The authors develop the basic theoretical structure and framework underlying bundling decisions and define key elements of required decision information. The complexity of the determination of optimal bundling mixes in a multiservice environment is demonstrated, and an algorithm which greatly facilitates such determination under certain assumptions is outlined and discussed. Finally, the problem of allocating joint bundle profits among associated profit or cost centers is reviewed in detail. A number of alternative allocation criteria based on commonly acceptable notions of bargaining power and fairness are proposed. Their relevance and applicability to international tourism and tourist enterprises are discussed.

The aim of this paper is to explain why government-controlled enterprises do or do not have international activities (essentially in the sense of foreign direct investments) and to explain the international operations of such enterprises—which of their major operating policy decisions are distinctive in any way and why. The paper arises from 304 interviews with leading executives, government officials, union leaders, etc. throughout the nine EEC countries.

The central question that is examined empirically in this paper is: Do MNC stocks perform better than average market?

Multinational corporations, for three decades the leading actors in an emerging global industrial system, are threatened by rising nationalism. If they are to continue to grow and develop, they must respond to both host and home country nationalism. The major driving force behind the growth of multinational companies to date has been the efficiency and effectiveness advantage which we call the leverage of multinational “vertical” system over the smaller national “horizontal” systems. Unless multinational articulate better both the gains of large vertical systems and the equitable distribution of these gains among the nations that are a part of their global system, their continued growth and role in the world economy are in jeopardy. Specifically, five scenarios for MNCs are envisaged in five different political-economic regions of the world.

The yield levels and yield movements of Eurodollar rates are compared to yield levels and yield movements of similar U.S. securities. Contrary to the previous studies, we could find no consistent and meaningful lead-lag relationship between U.S. rates and Eurodollar rates. Additionally, we found that long-term Eurodollar rates are not determined by long distributed lag of short-term rates. With and without capital controls and despite increased liquidity and more information there exist difference in yield levels and yield movements.