Foreign Trade Prices Research Articles

Selected Factors Influencing China's Palm Oil Import Demand from Malaysia

The export of palm oil from Malaysia to China has declined since 2013, although the Malaysian Ringgit has depreciated. The Malaysian palm oil market has also struggled against the Indonesian palm oil and soy oil in China. Hence, this study aimed to identify the significant factors influencing China's demand for Malaysian palm oil by adopting the Auto-Regressive Distributed Lag (ARDL) analysis. The finding revealed that the currency rate of exchange, the foreign trade price of Malaysian palm oil to China, and the international soy oil price significantly influence Malaysian palm oil demand in China. Nevertheless, China's real GDP per capita showed a positive and significant influence only in the long run. The demand for Malaysian palm oil in China was not significantly impacted by the palm oil price offered by Indonesia, neither in the long run nor short run. Thus, the authorities related to this industry need to strategize the stock management system to control the price and currency stabilization to maintain its competitive power.

Economic content of foreign trade prices and the mechanism of their formation

The article highlights the main trends of the current state of Ukraine’s foreign trade in terms of exports and imports of goods and services. It is noted that in the current conditions of globalization, foreign economic activity is one of the necessary conditions for maintaining sustainable economic development of the country, increasing the welfare of its population, improving the quality and standard of living.The commodity structure of foreign economic activity of Ukraineis characterized. It is proved that the structure of Ukraine’s foreign economic activity is dominated by commodity orientation. Thus, in the total value of exports, goods occupy more than 80%, in the total value of imports – more than 90%. It is generalized that despite the socio-economic instability, the current state of Ukraine’s foreign economic activity remains at a fairly high level, which causes its close dependence on changes in external conditions. It is substantiated that the central role in determining the total volume of exports and imports of goods and services is occupied by the issue of pricing. The economic content of foreign trade prices through the prism of the main types of foreign economic transactions is highlighted. It is proved that the mechanism of formation of foreign trade prices is due to their economic content and the specifics of the components, which are clearly regulated by current legislation. At the same time, it is determined that the mechanism of formation of foreign trade prices in the implementation of export and import operations is excellent, due to their economic content and the specifics of the operations themselves. The main components of export and import prices are considered. A detailed description of the individual components of prices is given.It is generalized that despite the clarity of the definition of the main components, the formation of seller prices (exporter or importer) is influenced by contractual terms agreed between the subjects of foreign economic relations in accordance with the rules of Incoterms. In fact, the latter are intended to «simplify» the lives of participants in domestic and international trade transactions and contain a detailed description of the distribution of terms of responsibility between the buyer and seller for the goods and their delivery in foreign markets.

Impact of technological progress on China's textile industry and future energy saving potential forecast

China has the largest textile industry with the complete industrial chain and also the largest textile exporter in the world. The study analyses the energy substitution effect of technological progress of China's textile industry using a macroeconomics approach. In order to predict future energy saving potential, we examine the relationship between energy intensity and its five main factors (technological progress, enterprise scale, labor productivity, dependence on foreign trade and industrial electricity price) by co-integration technique. Empirical results indict that electricity shows alternative features to other energy sources in the context of technological progress in China's textile industry. Besides, there exists a long-run equilibrium among energy intensity and the five main factors. Monte Carlo method was applied for risk analysis to ensure the reliability of forecast. Further, future energy saving potential and CO2 emission reduction of China's textile industry was predicted using scenario analysis. The result shows that energy conservation potential of China's textile industry is 16.16–27.53 million tons of standard coal equivalent in 2025. Additionally, it was revealed that the CO2 emission reduction caused by the energy conservation will be 32.63–55.60 million tons in 2025. Finally, future policy priorities for energy conservation of Chinese textile industry are suggested.

Innovative Approaches Towards the Formation of Contractual Terms within the Effective System of Risk Management in Foreign Economic Activities

The category of contractual risk is considered, which enables to effectively manage activity on the product market in the conditions of scenario uncertainty as well as to evaluate economic feasibility of legal constructions and means of the legal arsenal. In the article the importance of the system risk management in carrying out foreign economic activity is justified. The classification of risks in foreign trade is related consistently and in details. The analysis of innovative approaches towards the formation of contractual terms within the effective system of risk management is of particular interest. Incoterms 2010 was selected as a founding document in contractual terms, thus, a detailed practice of the choice of appropriate basic terms of delivery is presented. A structure of foreign trade prices and factors affecting it are provided for the justification of the selected terms. At the modern stage a system of risk management allows ensuring not only national security of the state but also enables to establish partnership relations with the participants of foreign trade activity that are based on the principle of categorizing, in accordance with which an automatic technology of categorizing the participants of foreign trade activity is developed.

Legal Regulation of Administering Customs Payments in EAEU States

The current discrepancy between the practice of administering customs payments, requirements forthe administration, the need to enhance fiscal effectiveness of customs authorities, the introductionof new ways to impact income of customs payments have determined the relevance of the research.A number of facts confirm the timeliness and significance of this study. Formation of EAEU on January 1,2015 brought the international economic integration to the next stage associated with the unificationof tax legislation. Second, the states were not members of the Customs Union within the EurasianEconomic Community joined this economic union (hence the customs union), meaning that they willhave to make “the leap”, including the leap towards the legal regulation. Another aspect supporting therelevance of the research is that EAEU, as integrative unification, has single legal space concerningall the customs regulation. The vectors of its development are multidirectional depending on the type of payment, for example, customs and tariff regulation have to be solved at the supranational level, taxreturn requires unifying and harmonizing national legislation standards. All these points influence themechanism of administration and have to be considered for improving its effectiveness. There is a lotof problems in this area mostly have systemic character: decreased customs cost of goods and theirunreliable declaration; low efficiency in the system of obtaining information on foreign trade prices;low efficiency of customs control; insufficient level of interaction of customs and tax authorities; lackof system approach to the analysis of information about the participants of foreign economic activity,improving system of determining and control of customs cost as tax base for calculation of payments.The paper collates the administration of customs payments and customs and tax administration. Thesystems of governing bodies; complex of the norms and rules regulating an order of levy of customspayments; the information environment of performing management-information exchange of tax andcustoms authorities are considered. This mechanism is provided by multilevel legal base incorporatingrelevant norms of EAEU member international duties, Customs Code of the Customs Union and otheracts of the customs legislation of EAEU, and customs legislation of EAEU states. The results can beused for improving mechanism of customs payments administration. They may be applicable not onlyin Russia, but in all EAEU states where most experts speak Russian and there is still no scholar basisfor the solution of the issue mentioned too.

ИССЛЕДОВАНИЕ ДИФФЕРЕНЦИАЦИИ ВНЕШНЕТОРГОВЫХ ЦЕН С ПРИМЕНЕНИЕМ ДИСПЕРСИОННОГО АНАЛИЗА

This article considers the methodological approach for the study of foreign prices of goods by using of dispersion analysis. Currently, one of the problems associated with the avoidance of organizations from the payment of customs duties, is an understatement of the value of goods crossing the customs border of the Eurasian Economic Union (EAEU). For this reason, control by the customs authorities of foreign trade prices for goods is one way of ensuring economic security of the Russian Federation, which is the leader of the EAEU. Because in the process of customs clearance of consignments, customs authorities of the Russian Federation have considerable difficulties with the control of the reliability of the declared value of the goods, there is a need to apply mathematical and statistical methods for the analysis of pricing information. Based on the above, we propose to use multivariate dispersion analysis for research purposes of foreign trade prices for goods.

Foreign trade and grain prices in the Russian Empire. For or against the neoclassical theorems of trade?

This paper deals with the problem of the influence of grain export from the Russian Empire on the domestic price on bread. The counterfactual model of Russian grain market development is proposed, in case if grain export is ceased. The authors refer to a wider range of issues, including not only grain export of Russia in the beginning of the last century, but also to the neo-classical theories of foreign trade. The authors provide analyzes of export's effects on the balance of payments of the Russian Empire and investments structure and level. In this regard, it is proved that the growth of bread exports negatively affected investments in the manufacturing sector, and in another way in case of falling export of grain. The authors conclude that the export of labour-intensive goods from the country can provoke the outflow of capital in the country specializing in the production of capital-intensive goods, since the export of labour-intensive products reduces the demand for capital. The export of capital from the Russian Empire before the First World War was so significant that the government was forced to turn to foreign loans. In this regard, the authors have questioned that the positive balance of payments has always positive effect on the national economy. In Russia, grain export had negative consequences in the long term, slowing modernization, however making a positive trend for the country's agriculture, especially its Southwestern regions. However, the authors believe that increase in grain export had been predetermined by the nature of food consumption in the Russian Empire. In this context, the authors try to draw parallels with the modern situation in the Russian economy in the context of «resource curse».

Improvement of customs statistics in Georgia

Purpose of the articlePurpose of the present article is to identify drawbacks in the field of customs statistics of Georgia and to formulate concrete steps for their correction. Methodology/methodsThe methods of induction, deduction, analysis, synthesis, statistical observation and grouping have been used in the research process. The aim of the scientific work is to determine the principles for improving the statistical registration of commodity at the customs in Georgia. ResultsCountries of origin are not yet completely reflected in the cargo-customs declaration at the Georgian customs; the field ``means of transport at the border'' in the cargo-customs declaration is not filled in; data on estimated market value of the means of transport in the databases of Service Agency of the Ministry of Internal Affairs of Georgia is not complete; detailed coding of imported vehicles is carried out incorrectly; the simplified customs declarations are not completely filled in with reference to countries, 11-digit item coding and value. In terms of registration, certain problems are caused by the fact that a sender and a country of final destination are not always filled out in the declaration. Problems exist in producing foreign trade price indices, the issue being that he information on foreign trade statistics is classified according to the Harmonized Commodity Description and Coding System while price indices are calculated according to the classification of types of economic activity on the 4-digit level; in filling in declarations there are frequent errors related to registration of commodity code, weight and additional units of measurement. ConclusionsEmpirical data related to production of Foreign Trade Statistics are characterized with certain errors, as a part of foreign trade operations remains unregistered. It means that registered value of exports and imports does not fully correspond to the value of actual flows.

Russian foreign trade price competitiveness

We examine export and import prices for Russian commodities relative to world prices during 2002—2011 across aggregated and disaggregated commodity groups. We also propose an aggregated export price competitiveness index as a tool of monitoring quality dynamics and a composite price competitiveness rating by commodity groups.

Unit Value Indices as Regional Indicators of Spanish Foreign Trade Prices

Unit Value Indices as Regional Indicators of Spanish Foreign Trade Prices

Foreign Trade Pricing and Consistency of a Monetary Union

Strong differences as regards the price determination of exports can be seen in the euro zone. Some countries seem to use local pricing: they set their selling price in the purchaser?s currency, so local-currency export prices are then very sensitive to exchange-rate fluctuations. Others on the contrary find it easier to impose their price in local currency. We try to modelize this heterogeneity within a very simple framework: we figure out a two-country monetary union, one of them is price-taker for its exports and the other is price-maker. We then examine the consequences of an exchange shock against the rest of the world. As far as reactions to this shock are asymmetric, the Central Bank, having as its objective the average inflation of the union, might strengthen the negative impact of such a shock, at least in one of the two countries. (This abstract was borrowed from another version of this item.)

Foreign Trade Pricing and Consistency of a Monetary Union

<titre>R&#233;sum&#233;</titre> On observe de fortes divergences dans la zone euro dans la formation des prix des exportations. Certains pays semblent pratiquer la tarification locale&#160;: ils fixent leur prix de vente dans la monnaie de l&#8217;acheteur, les prix &#224; l&#8217;exportation exprim&#233;s en monnaie domestique sont alors tr&#232;s sensibles aux fluctuations de change. D&#8217;autres, au contraire, ont plus de facilit&#233; &#224; imposer leur prix en monnaie domestique. Nous tentons de mod&#233;liser cette h&#233;t&#233;rog&#233;n&#233;it&#233; dans un cadre tr&#232;s simple&#160;: on se situe dans une zone mon&#233;taire &#224; deux pays dont l&#8217;un est price-taker pour ses exportations et l&#8217;autre price-maker. Nous examinons alors les cons&#233;quences qui pourraient r&#233;sulter d&#8217;un choc de change avec le reste du monde. Dans la mesure o&#249; les r&#233;actions &#224; ce choc sont asym&#233;triques, la Banque centrale ayant pour objectif l&#8217;inflation moyenne de la zone risque de renforcer l&#8217;impact d&#233;favorable d&#8217;un tel choc, au moins dans un des deux pays. JEL Classification: F41, F33, E52

Compiling and Using Export and Import Price Indices

Export and import price indices are essential for assessing the impact of international trade on the domestic economy. Among their most important uses are analyzing developments in the trade balance, measuring foreign prices' contribution to domestic inflation, and deflating nominal values of exports and imports for estimating the volume of gross domestic product. This paper discusses the main uses of trade indices and the data sources used to compile them. It also presents various approaches used to compile foreign trade price indices, addresses various problems encountered in developing these indices, and provides some recommendations on how to address them.

Compiling and Using Export and Import Price Indices

Export and import price indices are essential for assessing the impact of international trade on the domestic economy. Among their most important uses are analyzing developments in the trade balance, measuring foreign prices' contribution to domestic inflation, and deflating nominal values of exports and imports for estimating the volume of gross domestic product. This paper discusses the main uses of trade indices and the data sources used to compile them. It also presents various approaches used to compile foreign trade price indices, addresses various problems encountered in developing these indices, and provides some recommendations on how to address them.

The Impact of Foreign Trade on the Employment of Unskilled U. S. Workers: Some New Evidence

This paper explores four empirical relationships reflecting the impact of foreign trade on the employment of unskilled workers: (i) the direct relationship between net exports and embodied education of the corresponding goods; (ii) the changes in domestic prices accompanying changes in net exports; (iii) the relationship between real or potential import competition and defensive measures such as more investment or increasing the skill level of the labor force; and (iv) the relationship between foreign trade and domestic prices. None of these exercises suggests that foreign trade has much impact on the employment of less skilled U.S. workers.

DFI, foreign trade and transfer pricing

This article investigates the impact of direct foreign investment (DFI) on the foreign trade of China. It firstly presents a theoretical discussion of the impact of DFI on foreign trade from both macro and micro-economic views, and then provides an empirical study of the role of foreign-invested enterprises in the foreign trade of China. In particular, this article explores transfer pricing by multinational corporations (MNCs), probing their motivations and latitude to practice transfer pricing in the Chinese particular circumstances and examining empirical evidence.

The Impact of Foreign Trade on the Employment of Unskilled U.S. Workers: Some New Evidence

This paper explores four empirical relationships reflecting the impact of foreign trade on the employment of unskilled workers: (i) the direct relationship between net exports and embodied education of the corresponding goods; (ii) the changes in domestic prices accompanying changes in net exports; (iii) the relationship between real or potential import competition and defensive measures such as more investment or increasing the skill level of the labor force; and (iv) the relationship between foreign trade and domestic prices. None of these exercises suggests that foreign trade has much impact on the employment of less skilled U.S. workers.

The Impact of Trade Prices on Employment and Wages in the United States

This paper investigates the sensitivity of sectoral employment and wages in the United States to changes in foreign trade prices for 1980-90. Previous studies have concentrated mainly on the impact of changes in import prices on employment and wage levels. This paper estimates the impact of changes in both import and export prices on employment and wages in each of 12 three-digit standard industrial classification (SIC) manufacturing sectors. The basic conclusion is that, for most sectors, changes in trade prices do not have significant effects on employment and wages, although they generally have a larger impact on employment than on wages.

The Impact of Trade Priceson Employment and Wages in the United States

This paper investigates the sensitivity of sectoral employment and wages in the United States to changes in foreign trade prices for 1980–90. Previous studies have concentrated mainly on the impact of changes in import prices on employment and wage levels. This paper estimates the impact of changes in both import and export prices on employment and wages in each of 12 three-digit standard industrial classification (SIC) manufacturing sectors. The basic conclusion is that, for most sectors, changes in trade prices do not have significant effects on employment and wages, although they generally have a larger impact on employment than on wages.

China's Foreign Trade Behavior in the 1980's: An Empirical Analysis

This paper studies the behavior of China’s foreign trade in the 1980s. Chinese customs data are used to construct, for the first time, quarterly unit value and volume series that are then used to estimate foreign trade income and price elasticities. The estimated export supply price elasticities are negative and became even more negative after the reforms in 1985. The import price elasticity is very close to minus one. These results suggest that administrative controls still have a dominant effect on China’s trade and may also suggest that reforms in the management system of Chinese enterprises were not sufficient to create profit maximizing behavior by managers.