Protected Domestic Market Research Articles

ANALYSIS OF UKRAINE’S INTERNATIONAL TRADE IN THE EUROPEAN UNION

Ukraine's foreign trade is one of the most important means of increasing the state budget, and the European Union is the strongest global economic organization, the largest and best regional market in the world. Therefore, the study of the problems of economic cooperation between Ukraine and the EU in the context of wide and favorable access of domestic enterprises products to the EU markets is becoming increasingly important for achieving a strategic goal. This goal concludes the development of Ukraine`s economy and achievement of a rightful place in the international differentiation of labor. The article considered the socio-economic nature, role and importance of international trade; main problems and prospects of Ukraine's trade with the EU as well as its dynamics and structure, various methods which are applied to analyze the current state of foreign trade of Ukraine with the EU. In our work we analyzed the obstacles of trading between Ukraine and the EU, ways to overcome them and benefits of this trade. The application of the Free Trade Area between Ukraine and the EU contributes to the gradual expansion of Ukrainian export access to European markets under the Association Agreement. The execution of this agreement for Ukrainian business entities simplified the entry to the protected domestic market of EU Member States and gave the opportunity to realize its own competitive benefits in purchase quality and price. Under this Free Trade Agreement Ukraine assumed not only opportunities but also certain obligations on improvement of quality standards and product safety, implementation of reforms in the area of technical regulation, development of quality assurance system and safety food industry. The simplification of goods access to other markets is indirect benefit for Ukrainian manufactures. The entry to the EU markets with high level standards automatically indicates goods quality.

KT&G: From Korean monopoly to ‘a global name in the tobacco industry’

ABSTRACTUntil the late 1980s, the former South Korean tobacco monopoly KT&G was focused on the protected domestic market. The opening of the market to foreign competition, under pressure from the U.S. Trade Representative, led to a steady erosion of market share over the next 10 years. Drawing on company documents and industry sources, this paper examines the adaptation of KT&G to the globalization of the South Korean tobacco industry since the 1990s. It is argued that KT&G has shifted from a domestic monopoly to an outward-looking, globally oriented business in response to the influx of transnational tobacco companies. Like other high-income countries, South Korea has also seen a decline in smoking prevalence as stronger tobacco control measures have been adopted. Faced with a shrinking domestic market, KT&G initially focused on exporting Korean-manufactured cigarettes. Since the mid-2000s, a broader global business strategy has been adopted including the building of overseas manufacturing facilities, establishing strategic partnerships and acquiring foreign companies. Trends in KT&G sales suggest an aspiring transnational tobacco company poised to become a major player in the global tobacco market. This article is part of the special issue ‘The emergence of Asian tobacco companies: Implications for global health governance’.

Export profitability, competition and technology

The present paper seeks to examine the interplay between competition and technology in the export decision-making of homogeneous firms in an oligopolistic framework. The firms' behaviour is studied here in two alternative scenarios: (i) a protected domestic market, and (ii) a non discriminated domestic market (i.e. absence of trading cost etc across the border). In the first scenario, we argue that a higher degree of competition in the domestic market encourages exports when advanced technology prevails and vice versa. Similar effects are noticed in the second scenario. These propositions are analysed both theoretically and empirically.

Internacionalizacion Tangible e Intangible, el caso de las PYMES Argentinas

This study reviews the concepts of tangible and intangible internationalization using a data from Argentinean SMEs. The findings suggest that managers may have to make a strategic commitment to upgrade and expand firms’ resources and capabilities to achieve long term internationalization. The results offer evidence that becoming an international company is not only about having a physical presence in a foreign market. It is important to re-focus the firms’ outlook from competing in a protected domestic market to competing in markets with a strong presence of international companies. In addition, managers may have to shift their focus from short-term rent and profit seeking to long-term internationalization. This research also contributes to the study of internationalization of SMEs as it further expands the concept of internationalization by including a long-term perspective where the company can be international without having a physical presence in a foreign market

Indian Jute Industry at the Cross Road: Focus on West Bengal

The world packaging industry, criticized for degrading the environment by using synthetic packaging materials, found a solution in jute - a biodegradable green product. Prior to large-scale use of synthetics, the demand for Indian jute in the global packaging industry was very high. Till early seventies, India's share in the global jute market was more than 50%. With the decline in the use of jute in developed countries, the Indian jute industry redirected its focus to the protected domestic market for its survival. Now, in the altered liberalized environment, the industry is at the crossroad. There is increased pressure on the government from the synthetic fiber lobby to reduce its patronage by diluting the compulsory jute-packaging rule; the protected domestic jute packaging market is under threat. But export markets are increasing. By demanding more ecological packaging, global consumers have strengthened the export potential of Indian jute. To compete with plastic industry, recently (early 2005), the United Nations has taken an initiative to form a jute cartel involving five major jute growing countries namely India, Bangladesh, China, Pakistan and Nepal. Although, plastic packaging materials cost at least 50% less compared to jute, it is expected that due to increased environmental consciousness, demand for jute in the international market will increase vis-a-vis plastic. (ABP'15.6.05) In the first part of this study, we shall try to analyze the present status of the industry in a secured domestic market. In the second part, we shall discuss about the changes to be introduced in various functional areas to meet the growing demand of jute products in the in the post MFA (multi fiber agreement) quota free global market.

Economic internationalisation and regional response: The case of North Eastern Mexico

Economic internationalisation and globalising processes have a dialectical appearance. The trend towards homogenisation in an economic, social, political and cultural sense will meet with regionally generated production, innovation and knowledge systems that, while responding to these external influences, develop their own manifestation of the global‐local nexus. The developments in Mexico’s North East, with the industrial city of Monterrey as its core centre, present an example of the impact of these forces. Until 1988 Monterrey industries were operating on a protected domestic market. This situation changed with the opening up of the Mexican economy in that year and the signing of the NAFTA agreement with the USA and Canada in 1993. This paper analyses this insertion in the world economy and the regional response, first on an institutional level where the special brand of family capitalism – as found in Monterrey – is confronting the exigencies of international competitiveness and the organisation of business practice it requires. Second, on a sub‐regional level, we observe the reaffirmation of regional idiosyncracies in the social, political and cultural sphere. The interaction between these two processes has been creating a most interesting case of glocalisation within the context created by NAFTA.

Financial Reform and the Role of the Central Bank: The Experience of the Republic of China on Taiwan

1. An Overview of Postwar Economic Development in the ROC The economic conditions that prevailed in Taiwan, the Republic of China, during the early postwar period were similar to those found in many resource-poor, low-income developing countries. There was the problem of overpopulatio n, with the natural rate of population growth exceeding three percent per annum. The domestic market was small. Huge military needs competed with development projects for scarce resources. Moreover, the economy suffered from chronic balance-of-payments deficits and unchecked inflation. It is against this backdrop that the reconstruction of the Taiwan economy began in earnest, following the central government's relocation to the island in 1949. Economic development from the end of World War II to the late 1950s was characterized by efforts to promote both the growth of the agricultural sector and of import-substituting industries. The simple and relatively easy phase of import substitution, however, appeared to reach its limits within a relatively short period due to the constraints imposed by a narrow, protected domestic market. It was gradually recognized that only an outward-looki ng or exportoriented industrialization strategy could sustain a high rate of economic growth in a small island economy such as Taiwan. As a result, a series of policy reforms

Consuming Electronics: Japan's Strategy for Control

Consumer electronics has been one of the boom industries of the postwar era. It is now almost completely dominated by Japanese companies who have proved themselves adept at refining technologies borrowed from the West and at exporting cheaper, quality products back to the West. A protected domestic market, supremacy in miniaturised manufacturing techniques, the careful targeting of key components and the shrewd analysis of social trends have been the hallmarks of Japan's strategy for control of a sector from which innovations can 'trickle up' to even larger markets.

Resource-based industry in boom, downswing and liberalization: Mexico

Mexico's oil windfall was advantageously later and smaller than that of most oil exporters, but it was still absorbed too quickly. Inflation accelerated, the exchange rate appreciated and diversification into competitive non-oil tradeables, like resource-based industry (RBI) was retarded. Too much RBI investment was channelled through state enterprises whose performance deteriorated. It relied heavily on the protected domestic market which fell short of projections. Excess capacity and inadequate revenues then made RBI vulnerable as Mexico rapidly liberalized its economy in the late 1980s.

INTERNATIONAL COMPETITION IN HIGH TECHNOLOGY: THE BRAZILIAN AIRCRAFT INDUSTRY

This paper reviews the growth of the Brazilian aircraft industry, and evaluates the strategic choices and government policies that have influenced its development. Brazil's goals of military independence, technological development and improvement of its balance of payments have influenced the development path chosen and the requirements for success. Brazil's attempts to overcome the barriers to achieving technological competence, cost competitiveness, market acceptance and financial sustainability are described. It is argued that the government has played a crucial role in providing financial resources and a protected domestic market, but that it has allowed the key enterprise, Embraer, to maintain an emphasis on commercial viability and international competitiveness. Embraer's emphasis on product niches where it has potential competitive advantages has been a key to its success. It is argued that a clear competitive strategy, based on a thorough analysis to the key success factors in the industry, is a vital link between government goals and support and international competitive success.