Domestic Sales Research Articles

Corporate Endorsement of Controversial Nationalist Movement: Influences of Divergent Customers and Consequences

A growing body of research has revealed that firms leverage nationalism in their strategies. However, it is unclear why some firms are more likely to do so than others. This paper uses institutional theory to address this question and examines the influences of domestic and foreign customers. We study firms’ responses to nationalist movements, a type of sociopolitical mobilization arising in response to international controversies. We argue that, as firms attempt to maintain legitimacy with their customers, those with more domestic customers are more likely to endorse nationalist movements, whereas those with more foreign customers from antagonistic countries are less likely to do so. Furthermore, reputation-sensitive customers exert a stronger influence than other customers. However, when firms have foreign customers who are targets of nationalist movements, they face an urgent need to demonstrate their patriotism and hence are more likely to endorse nationalist movements. We find support for these theoretical propositions in a study of Chinese firms’ endorsements of a nationalist movement. Chinese firms that endorsed the movement obtained short-term gains in the stock market and domestic sales but no significant growth in overall sales. These findings contribute to the research on antecedents of firms’ strategic leverage of nationalism, organizational responses to institutional complexity, and corporate side-taking in sociopolitical controversies.

The Current State of the Russian Budget System and the Potential for Financing the Federal Budget Deficit

For the first time, Russia’s budget system is under large-scale stress in all areas: risks of losing the tax base due to international sanctions, a steady increase in unforeseen expenses, inflation risks, and rising debt servicing costs. In this regard, it is necessary to identify and analyze potential sources of financing the federal budget deficit as the main guarantor of budget stability. The article examines the state of the consolidated budget of the Russian Federation and the budgets of state extra-budgetary funds based on the results of the first half of 2024. It is shown that oil and gas revenues remain the main source of revenue growth. Among non-oil and gas revenues, personal income tax and VAT from domestic sales are growing at an accelerated rate. At the same time, the positive dynamics of some sectors of the Russian economy is largely due to budget financing. At the same time, inflation remains above target values, which forces the Central Bank of the Russian Federation to tighten monetary policy. The excess growth of federal budget expenditures and the increase in nominal rates threaten financial stability. In this regard, the article assesses the potential for financing the federal budget deficit in the context of strict borrowing restrictions. Based on the analysis of the state of the domestic federal loan bond market, a conclusion is made about the high risk of a liquidity crisis and the potential for placing domestic debt at the expense of non-bank financial institutions and individuals.

Domestic Demand and Export Performance in CEMAC: An Assessment with Endogeneity-related Model

Based on several alternative approaches there is by now some evidence suggesting that there is a negative relationship between exports and domestic sales. But in the majority of cases this regularity has focused on industrialized countries. While the external trade of African countries faces numerous challenges, with the low level of intra regional trade and the concentration of exports in some raw materials. Thus the aim of this paper to assess this new export channel for African countries. We then estimate a dynamic panel model with an error correction mechanism of the export market share (the difference between exports and foreign demand) for the six economies of the CEMAC zone between 1974 and 2021. Through the use of instrumental variables (2SLS) we address the role of endogeneity. According to the results, such link is prominent for African countries such the CEMAC countries where domestic demand impacts effectively negatively exports in CEMAC with a negative elasticity of around 53 %. When allowing for an asymmetric relationship between domestic sales and exports the results remain unchanged suggesting that a significant relationship between domestic demand and exports performance still holds.

Terror in the City: Local Terrorism and Firm Exports

Abstract In this paper, we examine the relationship between terrorism and exports at the firm-level. We use a panel data of 301 firms listed on the Pakistan Stock Exchange and records of terrorist attacks in Pakistani cities from 1999 to 2014. By calculating city-level terrorism indices, the study reveals significant variations in the frequency of terrorist incidents both between cities and within cities over different time periods. Our panel regressions show that firm exports are correlated with terrorist attacks in the cities where the firms are located, and these correlations are statistically significant even when terrorism is lagged up to six years. Interregional spillover effects of terrorism are less pronounced. While a negative correlation can be found between firm exports and our terrorism indices, the correlation with domestic sales tends to be statistically insignificant. The findings shed light on the persistent link between local terrorism and firms’ international and domestic operations.

Study of the Procurement of Landscape Plant Nurseries in Sukamantri Village Tamansari Sub-district Bogor Regency

Abstract Nurserymen play an important role in the landscape industry by producing and providing plants according to the required specifications. Sukamantri Village is one of the centers of landscape plant production and sales in Bogor Regency. The main problem faced by the nursery is the fluctuating demand for landscape plants, which can cause a shortage or excess of plant stock. This research was conducted in Sukamantri Village, Tamansari Sub-district, Bogor Regency, from November 2022 to February 2023. This study aims to obtain information on the variety of plants in the nurseries and analyze the problems in order to obtain recommendations for the development and sustainability of the nursery. Data obtained through surveys, interviews, and secondary data. They were analyzed quantitatively and qualitatively using the SWOT approach regarding internal and external factors in the procurement of landscape plants. The results show the variety of plants includes indoor and outdoor ornamental plants, herbal plants, and fruit plant seedlings. The problem faced is the decline in domestic and foreign sales. Some of the recommended strategies include developing human resource skills, improving production technology, better planning production, promoting on social media, and expanding the market by strengthening networks.

Trends and prospects for the development of e-commerce in the Republic of Kazakhstan

In recent years e-commerce has begun to play a significant role in the development of a market economy. Every year, its influence grows, changing the surrounding market infrastructure and people's attitude to the new conditions of digital commerce. The purpose of the article is to determine the features and prospects of the development of e-commerce in the Republic of Kazakhstan. The domestic online sales market is considered as an object of research. The paper analyzes the current state of the e-commerce market, identifies the main trends and prospects for its development. The dynamics of the development of e-commerce in the period from 2016-2022 is presented, the main factors that have a positive impact on the growth of e-commerce, such as a high level of digitalization, the development of new digital technologies in the market of non-cash payments and others are considered. The factors that have a negative impact on the domestic online sales market have been identified: underdevelopment of the logistics infrastructure, rising inflation, an insufficiently effective mechanism for regulating online commerce and consumer protection. To assess consumer behavior in regions with a less developed e-commerce market, a survey was conducted among residents of the Abai region, which allowed to determine the prospects for the development of this market. Measures have been proposed to develop the logistics infrastructure and introduce innovative delivery methods that will contribute to the growth of the industry. The results of the work can be used in the development and implementation of programs in the field of stimulating the development of the e-commerce market and improving its infrastructure.

Tax motivated vertical FDI and transfer pricing

We examine a domestic downstream producer that acquires a foreign input supplier with the aim of manipulating the transfer price and shifting profits from a high-tax to a low-tax country. The multinational enterprise faces a trade-off: insourcing the input at a high transfer price reduces the corporate tax burden but at the cost of increasing the input cost of its downstream division, which reduces domestic sales and profits. The optimal transfer price balances this trade-off. Regulation under the arm’s length principle is shown to reduce the transfer price, which reduces distortion in the domestic production and expands the region in which vertical FDI benefits consumers and social welfare in the home country. We also show that promoting downstream competition could help align private and social incentives, reinforcing the positive effects of regulation.

The Conditions and Manner of Executing the Contract with The Substitute Goods Are in The International Sales Convention and Subject Rights

Considering the expansion of international relations and the need for uniform laws in the international arena in recent decades, many efforts have been made to create transnational laws. The Convention on the International Sale of Goods has been developed to harmonise the laws regarding the rights of contracts so that by joining this convention, the countries will end the problems caused by the multiplicity of laws and create a uniform procedure. In a domestic or international sales contract, the seller must deliver the goods to the buyer by the terms of the contract. If the seller violates the contract and provides a defective or non-conforming product, the performance guarantee is stipulated in the Convention on the International Sale of Goods. In this research, we examine the guarantee of the right to request a replacement product. In paragraph 2 of Article 46 of the Convention, the buyer has the right to request a replacement product in case of a fundamental violation. If there is no fundamental violation of the goods and the possibility of remedying the defects of the goods, the buyer can request the removal of the defects of the goods. The institution of submission of substitute goods does not exist in Iranian law in the sense that is mentioned in the convention. Considering the non-accession of Iran, it will be useful to review the submission of substitute goods in Iran's law.

Economic uncertainty and corporate cash holdings: Evidence from Taiwan

We utilize data from publicly listed firms and unlisted entities in Taiwan spanning the period from 1990 to 2020 to investigate the impact of global, Asia-Pacific, China, or Taiwan’s economic uncertainty on firm cash reserves within a small open economy. Our empirical findings indicate that, as economic uncertainty increases, Taiwanese firms demonstrate a tendency to increase their cash holdings, particularly those reliant on exports. Smaller and unlisted export-oriented firms encounter greater challenges in fund management, thereby leading to an augmentation in their cash reserves. Conversely, enterprises primarily focused on domestic sales exhibit a diminished response to uncertainty, with the exception of smaller listed companies that marginally raise their cash holdings. These results illuminate the influence of financing constraints, export reliance, and various uncertainties on decisions pertaining to cash holdings. Furthermore, the study underscores the dependence of Taiwanese firms on trade and emphasizes the impact of external economic uncertainty on their decision-making process.

The impact of carbon policy news on the national energy industry

This paper explores the impact of unexpected changes in European carbon policy on Portugal’s energy sector, focusing on effects on sales, output prices, and labor market dynamics. Using a structural vector autoregression (SVAR) model, the study finds that news of tighter carbon regulations leads to a significant short-term increase in domestic sales. Output prices rise in both home and foreign markets, with a larger increase observed in the latter. The labor market responds positively, as evidenced by higher wages and hours worked. The study also reveals that these carbon policy changes have played a significant role in historical fluctuations within the energy sector, especially during the Great Financial Crisis and key policy changes. The findings highlight the importance of judicious policymaking concerning carbon regulations, as the escalation in energy prices wields significant economic effects, though not all of these effects are bad from the energy industry standpoint.

The social and economic dimensions of one of the world’s longest-operating shark fisheries

Context Social and economic information is limited for coastal commercial and recreational fisheries, particularly shark fisheries, which are perceived as unsustainable and as targeting sharks for fins. Aims To characterise the social and economic dimensions of one of the world’s few long-standing sustainable shark fisheries. Methods We reviewed historic data and surveyed stakeholders to understand the economic and social dimensions of the shark fishery currently operating in Western Australia. Key results Since the fishery’s historic peak, there has been a substantial reduction in the number of operating vessels and ports due to management intervention. For the vessels that have remained, catches and catch rates increased through time. Fishers sold only flesh and fins, whereas processors also sold cartilage. Revenue mostly originates from the domestic sale of flesh, not fins. This fishery provides additional social and economic returns through the employment of an average of 102 people per annum, the supply of local fresh seafood to communities and the expenditure of most of operational costs in local government areas. In addition, the average annual market value through the supply chain was A$32.6 × 106 (US$20.9 × 106). Conclusions Our study is the first step towards a more comprehensive valuation of the societal contribution of sustainable shark fisheries. Implications This novel information has a range of applications, from developing social and economic objectives in fisheries harvest strategies to empowering government agencies when making decisions on natural resource management.

Definition of ""Domestic Sales"" and ""Domestic Business Entities"" for Value-added and Non-value-added Business Tax Act: A Compilation of 2 Supreme Administrative Court Judegments

Definition of ""Domestic Sales"" and ""Domestic Business Entities"" for Value-added and Non-value-added Business Tax Act: A Compilation of 2 Supreme Administrative Court Judegments

Studying the sales market for products of the timber industry complex of the region under external sanctions pressure

Subject. The article addresses conditions and factors of the domestic sales market development of the timber industry in the region. Objectives. The aim is to assess the capacity of the domestic market for timber industry products in the target segment of wooden housing construction. Methods. The study employs statistical data on results of the forestry complex development of the Khabarovsk Krai, interviews with specialists from the Ministry of Forestry and Timber Processing, the Ministry of Construction of the Khabarovsk Krai, heads of forestry enterprises. Results. We revealed trends in the structure of production and exports of enterprises operating in the Khabarovsk Krai timber industry, the dynamics of production and consumption of forest products in the domestic market of the region. As a result of unfavorable conditions in the main (foreign) sales market, the activities of the timber industry complex enterprises became unprofitable. Implementation of government programs and flagship projects opens up opportunities to develop domestic demand. The capacity of the region’s wooden housing construction market is calculated based on three scenarios. Conclusions. Sustainable development of the timber industry complex of the region is possible, if government programs and flagship projects are implemented, aimed at the growth of the domestic market of wooden house construction.

EXAMINE THE EFFECTS OF GOODS AND SERVICES TAX (GST) AND ITS COMPLIANCE: REFERENCE TO SIERRA LEONE

This study analyzes the effects of (GST) and how it is being implemented in Sierra Leone. GST replaces previous taxes, including domestic sales tax, import sales tax, entertainment tax, hotel room tax, restaurant tax, food tax etc. The objectives of this study are to know the effect of GST on the Sierra Leone Economy, to know if GST implementation will lead to an increase in prices of goods and services; to assess GST compliance rate in Sierra Leone; and to know the reasons for GST implementation in Sierra Leone. The data collection method used both primary and secondary sources the study's participants were 89 employees of NRA and business owners in Sierra Leone 2021 to 2023. Questions were analyzed using SPSS in the form of descriptive analysis, chart, and correlation coefficient. The results showed that GST implementation has positive effects on Sierra Leone Economy. The introduction of GST is to boost revenue and promote economic growth in Sierra Leone. GST introduction in Sierra Leone has resulted in increased prices of goods and services. It is recommended that the NRA should provide tax education and awareness and provide availability and accessibility of technological infrastructure for GST implementation in the country.

EXAMINE THE EFFECTS OF GOODS AND SERVICES TAX (GST) AND ITS COMPLIANCE: REFERENCE TO SIERRA LEONE

This study analyzes the effects of (GST) and how it is being implemented in Sierra Leone. GST replaces previous taxes, including domestic sales tax, import sales tax, entertainment tax, hotel room tax, restaurant tax, food tax etc. The objectives of this study are to know the effect of GST on the Sierra Leone Economy, to know if GST implementation will lead to an increase in prices of goods and services; to assess GST compliance rate in Sierra Leone; and to know the reasons for GST implementation in Sierra Leone. The data collection method used both primary and secondary sources the study's participants were 89 employees of NRA and business owners in Sierra Leone 2021 to 2023. Questions were analyzed using SPSS in the form of descriptive analysis, chart, and correlation coefficient. The results showed that GST implementation has positive effects on Sierra Leone Economy. The introduction of GST is to boost revenue and promote economic growth in Sierra Leone. GST introduction in Sierra Leone has resulted in increased prices of goods and services. It is recommended that the NRA should provide tax education and awareness and provide availability and accessibility of technological infrastructure for GST implementation in the country.

Towards a Sustainable Future: Exploring the Role of Integrated Management Systems in Enhancing Export Competitiveness and Domestic Sales in Textile Industry

In today's globalized industrial landscape, marked by fierce competition and evolving consumer preferences, the imperative of ensuring product quality, environmental sustainability, and occupational health and safety has intensified for firms operating in both domestic and international markets. Integrated Management Systems (IMS) transcend mere compliance, serving as a strategic framework for firms to fortify their environmental sustainability credentials and mitigate reputational risks effectively. By fostering environmentally friendly production practices, enhancing employee skills, reducing accidents, and enhancing institutional image, IMS drives competitiveness through continual enhancements in product quality, workforce capabilities, resource utilization, and waste reduction. This study investigates the transformative potential of IMS in stimulating export growth and domestic sales within Pakistan's industrial sector. Utilizing panel data analysis of 94 textile firms spanning listed on the Pakistan Stock Exchange from 2009 to 2022, the findings underscore the significant role of IMS in fostering export growth and improving environmental performance, highlighting its crucial contribution to achieving business success and broader societal and environmental objectives.

Capital controls and firm performance

This paper studies the differential effects of capital controls (CCs) on firms’ performance depending on the firm’s production technology and export status. We empirically characterize the firm’s responses to the introduction of a CC using the Chilean encaje implemented between 1991 and 1998. Motivated by the empirical insights, we build a general equilibrium model with heterogeneous firms, financial constraints and international trade and calibrate it to the Chilean economy. We find that CCs have heterogeneous effects on firms. Exporting firms operating in more capital-intensive sectors are more negatively affected than exporting firms operating in less capital-intensive sectors. Non-exporting firms in capital-intensive sectors experience more negative effects on capital than firms in less-capital intensive sectors, but the opposite is true for domestic sales. These results are a consequence of the increase in financing costs, the depreciation of the real exchange rate, and compositional effects on the mass of exporters and non-exporters.

The impact of management practices on export margins of firms: evidence from a recent Egyptian industrial survey

PurposeThe paper aims at studying the effect of management practices on the extensive and intensive export margins of Egyptian manufacturing firms.Design/methodology/approachThe study relies on the 2020/2021 Egyptian Industrial Firm Behavior Survey (EIFBS) which comprises 2,383 manufacturing firms representing small, medium, and large sized firms located in different regions of Egypt: Urban Governorates, Lower Egypt, and Upper Egypt. It constructs an overall management z score for each firm to estimate its effect on a firm’s probability of exporting and value of exports using Ordinary Least Squares (OLS) regressions.FindingsResults indicate that good management is associated with a higher probability of firm exporting as well as higher export revenues conditional on exporting, robust to controlling for the level of domestic sales. These effects do not differ by firm ownership or type of sector, but rather by firm size, with managerial competence raising the probability of exporting more for large-sized firms. Additionally, good management is associated with higher firm productivity, innovation and worker training propensities which gives evidence that it is both an efficiency and a quality enhancer. Moreover, monitoring and targeting practices have significant positive effects on both margins, while incentives are only significant for the extensive margin.Practical implicationsFirms that aim at enhancing their export prospects and revenues should devote resources to review and upgrade their management systems to boost their product quality and production efficiency. Policy-wise, the government should create a competitive market environment that is open to both domestic and foreign firms’ entry to stimulate the adoption of better management practices.Originality/valueThe paper is the first to explore the link between firm management practices and export outcomes for a MENA country (Egypt). It makes use of a recent survey, the 2020/2021 Egyptian Industrial Firm Behavior Survey (EIFBS). The findings shed light on the importance of different management components (monitoring, targeting and incentives) in driving a manufacturing firm’s export performance.

Economic Crisis of Bangladesh's RMG Sector Effect of Government Borrowing to Meet the Budget Deficit

The economic crisis in Bangladesh's real estate industry sector is a cause for concern as it is heavily affected by the government's borrowing to meet the budget deficit. The high level of debt has led to inflation and a decrease in consumer spending, which has harmed the real estate market. Developers are struggling to find buyers for their properties and are facing financial difficulties as a result. The government should consider implementing policies to address the budget deficit and reduce the burden on the real estate industry. This could include measures to increase revenue through tax reform and reducing government spending. Additionally, the government should also focus on providing incentives for investors to invest in the real estate market, such as tax breaks and subsidies. Overall, addressing the budget deficit and providing support to the real estate industry is crucial to ensuring the stability and growth of the economy. The majority of the government's revenue comes from taxes, VAT, and the domestic sale of bonds and certificates of deposit, making it one of the largest corporations in any nation's financial industry. There are three organizations through which governments may occasionally borrow money from other nations: the World Bank, the IMF, or LIBOR London Inter Bank. To close the budgetary gap, higher-rate borrowing will be necessary. Estimating income and expenses before making any purchases or placing anything on the market is the primary tenet of a budget.

「스마트농업 육성 및 지원에 관한 법률」 제정에 따른 향후 과제

The Act on Promotion and Support of Smart Agriculture, which was approved during the plenary session of the National Assembly in June 2023, is scheduled to take effect from July 2024. Comprising 6 chapters and 25 articles, this legislation addresses key aspects such as the framework for nurturing and supporting smart agriculture, the establishment of a foundation dedicated to smart agriculture, and the promotion and expansion of smart agricultural practices. Anticipated to serve as a foundational milestone, the Act is poised to facilitate diverse policy initiatives grounded in legal principles in the future. Additionally, it will play a crucial role in consolidating the objectives and orientations of various policy endeavors that have, until now, lacked a clear legal foundation.
 However, as many of the provisions are focused on supporting policy projects currently being implemented by the Ministry of Agriculture, Food and Rural Affairs, there are still some issues that are insufficient in content or require further consideration. Primarily, it may be deemed inappropriate to explicitly designate ‘promoting unmanned agriculture’ as the primary objective of the law, for various reasons. Considering the various social issues related to smart agriculture, it seems somewhat inappropriate that the Act does not include a provision stipulating the priority of application of laws to prevent contradictions or conflicts in the interpretation and enforcement of laws in the future. In addition, the absence of provisions related to support for domestic and international sales of products or treatment of smart farm by-products is also considered to be an area that needs to be supplemented in the future.
 In fact, Korea's ‘smart agriculture’ did not initially rely on clear definitions and concepts. Instead, it evolved by incorporating and refining similar or adjacent concepts, such as facility agriculture, precision agriculture, and digital agriculture, to a certain extent. This development was guided by addressing specific issues and aligning with policies. It is also a major characteristic of smart agriculture in Korea that the discourse on smart agriculture has been spread by the government, rather than naturally growing the pie of related industries centered on the private sector and the market like major countries abroad. Despite these limitations, smart agriculture has emerged as a major topic in agriculture, not only as a response to the agricultural sector's transition to a digital economy, but also as a way to increase agricultural productivity for food security, respond to the declining and aging farm population, and address climate change and environmental issues in the agricultural sector.
 Therefore, complementary work such as revising the law prior to the full-scale implementation of the Act on Promotion and Support of Smart Agriculture, resolving doubts and building consensus in the agricultural field, emphasizing the agricultural mission of stably supplying food and maintaining rural society, upgrading the smart agriculture policy promotion system centered on ‘data’, and setting goals and strategies for ‘Korean-style smart agriculture’ in a way that broadly recognizes and utilizes the problems and resources of the agricultural field as well as domestic climate conditions will be the future challenges of domestic smart agriculture sector laws and policies.