Trade Policy Research Articles

Influence of Geopolitical Events on Procurement Strategies and Supply Chain Dynamics in Multinational Corporations

Purpose: The aim of the study was to examine the influence of geopolitical events on procurement strategies and supply chain dynamics in multinational corporations Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study found that geopolitical events exert a profound influence on procurement strategies and supply chain dynamics within multinational corporations (MNCs), compelling them to adapt swiftly to global uncertainties. The study underscored that events such as trade conflicts, sanctions, and political instability disrupt established supply chains, necessitating strategic adjustments in sourcing, supplier relationships, and operational practices. MNCs respond by diversifying sourcing locations, enhancing supply chain transparency, and integrating robust risk management frameworks to mitigate geopolitical risks effectively. Unique Contribution to Theory, Practice and Policy: Institutional Theory, Resource Dependence Theory & Transaction Cost Economics (TCE) may be used to anchor future studies on influence of geopolitical events on procurement strategies and supply chain dynamics in multinational corporations. Encourage MNCs to adopt agile procurement strategies that prioritize flexibility and responsiveness to geopolitical disruptions. This includes establishing multi-sourcing strategies, leveraging local suppliers, and implementing digital platforms for real-time risk monitoring and decision-making. Strengthen supplier relationship management practices to build resilient supply networks. Foster transparent communication and collaboration with suppliers to co-develop contingency plans and mitigate supply chain risks arising from geopolitical events. Advocate for transparent and stable trade policies that reduce uncertainty and facilitate global supply chain operations. Engage in constructive dialogues with policymakers to address trade barriers, tariffs, and regulatory inconsistencies that hinder cross-border trade and procurement efficiency.

Exploring the Nexus Link of Foreign Direct Investment Inflows and Openness on Economic Growth: Evidence from BRICS Economies

This study aims to investigate how Foreign direct investment (FDI) and trade openness influenced economic growth in BRICS countries from 1990 to 2022, using the Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) and System Generalized Method of Moments (System-GMM) methods. Our findings show that these two variables boost economic growth by 0.172, 0.021, 0.291, and 0.072%, respectively. Additionally, the results indicate that BRICS countries have demonstrated greater resilience in terms of FDI and trade before and after the COVID-19 pandemic and the Russia-Ukraine war, underscoring the effectiveness of their investment and trade policies in maintaining economic growth amidst global disruptions.

Capital controls and trade policy

How does optimal capital-flow management change with prevailing trade policies? We study the joint optimal determination of capital controls and trade tariffs in a two-country, two-good model with trade in goods and assets. Because countries are large in both markets, a country-planner can achieve higher domestic welfare by departing from free trade in addition to levying capital controls, despite the cooperative optimal allocation being efficient. However, time variation in the optimal tariff induces households to over- or under-borrow through its effects on the path of the real exchange rate. As a result, optimal capital controls are generally smaller when trade policy is constrained (i.e., by a Free-Trade Agreement), but, absent retaliation, can be larger depending on the paths of underlying fundamentals.

A Study on Export Receipts and Import Payments of Goods and Services the Analysis for Bank of Bangladesh

Bangladesh's Central Bank regulates international trade and monetary policy. To maintain a balanced trade, the bank promotes exporters and controls imports. The bank monitors the foreign exchange market and implements policies to help the country's economic growth and development. Bangladesh's export payments and receipts by key commodities, geographic region, and service delivery approach is studied. The banking sector has grown exponentially, resulting in new banks, modernised banks, and new services to meet people's requirements. Over 50 local and foreign banks compete for service delivery, interest rates and customer base. Export receipts of services and import payments of services the number of observations in the two variables, and our hypothesised mean difference to the degrees of freedom. Thus, the null hypothesis is accepted and the two-tail p-value increases. The significance of the difference between groups is unaffected by a negative t-value. Imports Major Commodities research F-value is good, but P-value is (0.00), which is highly significant. The null hypothesis is rejected. The study focusing on export receipt and import payments is essential as it deals with the financial aspect of international trade. Export receipts essentially refer to the payments received by a nation for the goods and services it exports to other countries while import payments refer to the goods and services brought in from other countries. This study is import payments as it provides insights into the economic conditions of nations concerning their global trade relations. It also helps nation assess their trade strengths and weaknesses to complete globally

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP AND THE EUROPEAN UNION: OPPORTUNITIES AND CHALLENGES

The Regional Comprehensive Economic Partnership (RCEP) is a historic trade deal that has had a huge impact on drastically reshaping the economic landscape of the entire world. Formally established in November 2020, it represents a monumental achievement in regional cooperation and integration. The European Union (EU) has been a pioneering force in forging global trade agreements that have far-reaching implications for the world economy. As one of the largest trading blocs, the EU plays a pivotal role in shaping international trade policies and fostering economic integration. This study investigates the crucial role that the European Union plays in global trade agreements, concentrating on their influence on the evolution of sustainable business practices, diplomatic ties, and economic growth and prosperity. The present study is a descriptive study on the implications of RCEP for the European Union, the challenges it poses and the available opportunities.

Energy-Consuming Right Trading Policy and Corporate ESG Performance: Quasi-Natural Experimental Evidence from China

The energy-consuming right trading policy (ECRTP) represents a significant initiative to promote the sustainable development of Chinese enterprises. This study employs the difference-in-differences methodology to analyze how ECRTP influences ESG performance based on data from A-share listed industrial enterprises in China from 2006 to 2020. The findings indicate that ECRTP effectively enhances corporate ESG performance, and this conclusion holds valid following a battery of robustness checks. Moreover, ECRTP improves corporate ESG performance by promoting green technological innovation and green perceptions among executives. Tests for heterogeneity show that the ECRTP exerts a more pronounced influence on ESG performance for enterprises located in regions with high public environmental awareness, heavily polluting industries, and coastal areas. This study broadens the literature on ECRTP effectiveness evaluation, providing valuable insights for refining the design of these policies, promoting their implementation, and facilitating the achievement of dual control targets for energy consumption.

Article: Bidonomics Versus Maganomics: Pick Your Poison

This essay examines the international trade policies of Joseph Biden and Donald Trump, the two presumed candidates for President of the United States in 2024. I first analyse the trade law revolution effected by the Trump presidency, 2017–2021. During these years the Trump administration adopted a protectionist policy rooted in nationalism and populism. As a direct result of Trump administration trade policy there occurred: (1) a significant retreat from globalization; (2) paralysis of the World Trade Organization (WTO); (3) a revival of US unilateralism in trade policy; and (4) the US-China trade war. When Joseph Biden became president in 2021, he did not reverse the Trump trade policies. Declaring his favour of a ‘worker-oriented’ trade policy, the Biden administration defended Trump’s tariff policies while continuing his hostility to both new free trade agreements and the multilateral trading system. Biden’s distinctive addition to Trump’s trade policy is a protectionist industrial policy featuring subsidies and a ‘buy American’ mandate. Despite these similarities, Trump and Biden propose very different international trade policies for 2025 and beyond. Trump intends to adopt across the board protectionist tariffs of at least 10% on all imports and tariffs of at least 60% on all Chinese imports. The former tariffs will provoke numerous tit-for-tat trade wars; the latter tariffs will economically ‘decouple’ China and the United States. Both policies will raise prices and slow global economic growth. On the other hand, Biden eschews new tariffs. American policy will be rooted in industrial subsidies and ‘buy American’ protectionism. Critics of both Trump and Biden propose a ‘third way’ set of international trade policies that avoid protectionism. This ‘third way’ would feature new free trade agreements with Asian- Pacific, European, and Western Hemisphere nations, a revival of multilateralism and the WTO, and a more constructive trade relationship with China.

US international trade policy: Scenarios of protectionism and trade wars

US international trade policy under both the Trump and Biden administrations has been increasingly protectionist. This paper considers two policy scenarios under active discussion: (1) an across-the-board increase in all US tariffs by 10 percentage points, and (2) a severe escalation of the US trade war with China. The scenarios are analyzed using a multi-country computable general equilibrium (CGE) simulation model of the global economy. Trade wars or policy regimes of widespread protection will increase tariffs in many sectors simultaneously and include both final goods and intermediate inputs. The impacts are complex, with a web of direct and indirect forces coming into play across domestic and international markets. The global CGE model captures these mechanisms, including both short and long-run effects, with and without retaliation by partner countries. In a world economy where the US accounts for only 10 % of global trade and potentially rival trade bloc have emerged in Europe and E&SE Asia, the US is no longer hegemonic in global markets. We find that across-the-board tariffs do not protect manufacturing jobs because the cost of imported intermediate goods increases, raising costs in manufacturing production. The US trade war with China leads to a dramatic fall in bilateral trade. Other countries expand their trade to China and the US with the exception of closely linked partners (e.g. Canada and Mexico and all countries in E&SE Asia). We find that the world economy can adjust to US trade wars, diverting trade around the US.

Responding to the EU Green Deal: A Proactive Approach to Trade and Green Industrial Policy in Africa

Responding to the EU Green Deal: A Proactive Approach to Trade and Green Industrial Policy in Africa

Can China's energy quota trading impact the market performance and policy effects of carbon emissions trading?

With the gradual shift from dual control of energy consumption to dual control of carbon emissions, energy quota trading (EQT) and carbon emissions trading (CET) policies will be implemented in parallel in China. EQT policy will significantly affect the market performance and policy effects of CET, which consequently affects the dual control of carbon emissions. Therefore, constructing a system dynamics model coupling the national CET, EQT, and electricity markets, this paper researches the impact of EQT policy and its parameter design on the market performance and policy effects of CET through scenario analysis. The results show that: (1) Implementing EQT policy will reduce CET price and trading volume, negatively affecting CET market performance. This indicates that there is a certain substitution between EQT and CET. (2) EQT policy can enhance the emission reduction and decarbonization effects of CET policy. By curbing thermal power investment and generation and promoting green power, the EQT policy reduces carbon emissions by about 4.87% and optimizes the power supply structure. (3) To scientifically design the EQT policy parameters, lower energy saving targets and energy quota benchmark prices can alleviate the negative impact on CET market performance, but are not conducive to improving CET policy effects.

Promoting Decarbonization in China: Revealing the Impact of Various Energy Policies on the Power Sector Based on a Coupled Model

The carbon emissions of the power industry account for over 50% of China’s total carbon emissions, so achieving carbon peak and carbon neutrality in the power sector is crucial. This study aims to simulate the impacts of three energy policies—carbon constraints, the development of a high proportion of renewable energy, and carbon trading—on China’s energy transition, economic development, and the power sector’s energy mix. Through the construction of a dynamic computable general equilibrium (CGE) model for China and its integration with the SWITCH-China electricity model, the impact of diverse energy policies on China’s energy transition, economic progress, and the power mix within the electricity industry has been simulated. The integration of the SWITCH-China model can address the limitations of the CGE model in providing a detailed understanding of the specific intricacies of the electricity sector. The results indicate that increasing the stringency of carbon restrictions compels a reduction in fossil energy use, controlling the output of coal-fired power units, and thereby reducing carbon emissions. The development of a high proportion of renewable energy enhances the cleanliness of the power sector’s generation structure, further promoting the national energy transition. Implementing a carbon trading policy, where the entire industry shares the burden of carbon reduction costs, can effectively mitigate the economic losses of the power sector. Finally, the policies to further enhance the implementation of carbon trading policies, strengthen effective governmental regulation, and escalate the deployment of renewable energy sources are recommended.

Quantile-based extended joint connectedness between trade policy uncertainty and Gulf Cooperation Council Islamic sectoral volatility

This study quantifies the shock transmission mechanism between the trade policy uncertainty (TPU) index and Sharia-compliant stock sectoral conditional volatility in the Gulf Cooperation Council (GCC) countries. We employ a comprehensive analysis that includes the time-domain extended joint and frequency-domain quantum vector autoregressive (QVAR) frameworks. The time-domain QVAR demonstrates that TPU causes the most substantial shocks to utility sector volatility. Investors in the GCC must strategically allocate their investment portfolios to the consumer services and energy industries, which are less vulnerable to the TPU shock. The results show that TPU shocks provide more error variances to the long-term and bullish conditional volatility (or higher quantiles) of the utility, real estate investment trust funds (REIT), healthcare, and industry sectors. Conversely, during bearish volatility conditions (lower quantiles), TPU shocks result in higher shocks in the conditional volatility of the utility, REIT, finance, and industrial sectors. Long-term investors should diversify their portfolios to mitigate risk in the utility, REIT, and industry sectors through strategic investments in consumer service sector. However, in the short term and during both bearish and bullish sectoral volatility, the consumer service and industry sectors are more vulnerable to TPU shocks. Regarding diversity, the REIT, energy, and financial sectors are the least affected by TPU shocks, offering a protective buffer in the short term and during periods of higher and lower GCC Islamic sectoral volatility.

예비유아교사의 ESG 인지 유무에 따른 ESG 차이와 교육 요구도 분석

The purpose of this study is to analyze Environmental, Social, and Governance (ESG)differences and educational needs among pre-service early childhood teachers based on their ESG awareness. The subjects of the study are 113 students at A University in the Chungcheongbuk-do region. SPSS 25.0 and Excel programs were used to analyze the data. The data were analyzed using IPA, Borich Needs Model, and The Locus for Focus Model, and differences between current awareness levels and importance were examined using t-tests. The main findings are as follows: First, an analysis of the differences in current awareness levels of ESG based on the awareness of prospective early childhood teachers revealed statistically significant differences in current awareness levels of ESG and its subdomains, Environment and Social, whileno statistically significant difference was found in the current awareness level of Governance. The analysis of differences in the importance of ESG revealed that while there were no statistically significant differences in the importance of ESG and its subdomains, Environment and Social, there was a statistically significant difference in the importance of Governance. Second, the analysis of educational needs regarding ESG among prospective early childhood teachers who are aware of ESG resulted in common items derived from both the 1st quadrant (HH) of The Locus for Focus Model and the priority items identified in Borich's needs analysis. These include the necessity for transparent operation of early childhood education institutions, as follows: '12.Prevention of inappropriate succession in early childhood education institutions', '13.Prevention of unethical behaviors, such as embezzlement, by members of early childhood education institutions', '14.Efforts to maintain the soundness of the governance structure of early childhood education institutions'. Third, the analysis of ESG educational needs among prospective early childhood teachers who were previously unaware resulted in no common items between the 1st quadrant (HH) of The Locus for Focus Model and the priority items identified in Borich's needs analysis. However, the third priority item in Borich's analysis was prioritized in The Locus for Focus Model. Thus, while no common items were found between the two models, the third-ranked item in Borich's analysis was prioritized in The Locus for Focus Model, suggesting that '10.Establishment and execution of fair trade, anti-corruption, and ethical management policies for cooperative partners of early childhood education institutions'should be considered the top priority. The research findings underscore the necessity of developing a curriculum for early childhood education that incorporates subjects such as ethics, morals, philosophy, organizational behavior, leadership, and social responsibility to introduce ESG courses. Consequently, based on these findings, we propose integrating ESG principles into early childhood education from a managerial perspective.

Status and SWOT Analysis of the Internalization of Operations of S Electronics Company, Ltd.

S Electronics Company Ltd. demonstrated a well-defined management structure, agile organizational design, and a commitment to superior customer service, forming the foundation for its global expansion in markets like Vietnam, Thailand, and India. The company's diversified product portfolio, including cutting-edge connectors, strategically positioned it, supported by robust technological development and financial stability. A SWOT analysis highlighted its competitive edge while emphasizing the need to address weaknesses for successful internationalization. Opportunities for market expansion, technological advancements, and financial growth were identified, alongside threats in the global business landscape. Strategic planning leveraged SWOT analysis to enhance strengths, mitigate weaknesses, capitalize on opportunities, and counteract threats. Opportunities offered pathways for market expansion, technological prowess, and overall competitiveness. Threats related to trade policies, exchange rates, intellectual property, cultural disparities, and legal systems underscored international business complexities. Adherence to trade, intellectual property, tax, anti-monopoly, and labor regulations formed a strategic shield against risks, contributing to sustained growth. Prioritizing cultural intelligence ensured effective operations in diverse contexts and maximized global workforce productivity.

A Study on the Direction of Digital Trade Policy: Focusing on the Relationship between Korea and the ASEAN

A Study on the Direction of Digital Trade Policy: Focusing on the Relationship between Korea and the ASEAN

STUDY OF DWELLING TIME AT TANJUNG PERAK HARBOR SURABAYA INDONESIA

The research aims to determine the factors that influence dwelling time at Indonesian ports so that the government can make policies for releasing imported goods at ports more quickly and efficiently. This study uses secondary data obtained from KPPBC TMP Tanjung Perak quantitative data in the form of monthly pre-clearance, customs clearance, post-clearance, and dwelling time processing times from January 2020 to December 2022. Statistical analysis using the linear regression method uses the application SPSS. Based on the results of the analysis of the factors that influence dwelling time, it is concluded that the pre-clearance, customs clearance, and post-clearance processes simultaneously have an influence on dwelling time at the port of Tanjung Perak. Meanwhile, partially, the pre-clearance and post-clearance processes have a positive and significant effect on dwelling time, while the customs clearance process does not affect dwelling time. Currently, the customs clearance process is faster due to new policies and improved facilities. This research only discusses the management of imported goods, so other research using export variables is needed to increase the accuracy and efficiency of government trade policies.

Analysis of the US Unilateral Trade Policy for the Developing Countries: Impact on Trade Creation

Analysis of the US Unilateral Trade Policy for the Developing Countries: Impact on Trade Creation

Energy quota trading policy and energy efficiency: The role of government supervision and public participation

Unlike carbon emissions trading based on end-of-pipe regulation, the Energy Quota Trading (EQT) policy represents a market-oriented environmental regulation rooted in source control. However, its effectiveness on energy efficiency remains to be scrutinized. Using the panel data of 269 cities in China from 2011 to 2021, we employ the difference-in-differences method to examine whether and how the EQT policy impacts energy efficiency. Our results reveal that the EQT policy can significantly enhance green total factor energy efficiency. Mechanism analysis indicates that this promotion is primarily achieved by fostering green technology innovation and facilitating industrial structure upgrading. Further investigations explore the moderating role of external supervision, demonstrating that government supervision and public participation can amplify the EQT policy's efficacy in promoting energy efficiency. This underscores the complementary role of governmental and public in bolstering the utility of market-oriented incentives. Additionally, we identify significant heterogeneity in EQT policy effects across cities with varying geographical locations and development strategies. Our research offers critical insights into the adoption of source-control environmental regulations for developing countries.

The emerging international trade in hydrogen: Environmental policies, innovation, and trade dynamics

Hydrogen produced from renewable energy and other carbon-neutral sources has the potential of becoming an important medium for storing and transporting energy, partially taking on the role that fossil fuels play to date. We develop a novel theoretical and empirical model of sequential trade based on long-term contracts with one or more fixed-capacity projects entering each period in a modified Nash-Cournot competition. We simulate the emerging international trade in hydrogen using calibrated demand, supply, transportation, and policy data, exploring a set of scenarios to determine which factors have significant influence—in particular environmental, innovation, and trade policies. Our findings suggest that hydrogen trade exhibits significant price dispersion and two-way trade as vintages of contracts overlap in a market defined by endogenous innovation and policy interventions. Trade costs and the mode of transportation (pipelines or ammonia conversion, possibly others) play a pivotal role and influence the relative share of hydrogen production types (green, blue, or turquoise). Trade policies emerge as a more essential determinant of hydrogen trade than carbon and innovation policies.

An Historical Review of International Trade and CO2 Emissions in Pakistan: A Quantitative

Environmental protection has become an international issue, reflecting widespread concern about environmental degradation. Researchers have emphasized the importance of the environment in trade policy debates. The focus of this study is to explore the relationship that is present between trade openness and the quality of environment in Pakistan. This research investigates the famous nexus between trade and the environment. The study uses data from 1990-2021 for analysis. The emissions of CO2 (Metric tons per capita) serves as the proxy of Environmental quality as the dependent variable. Empirical analysis is done by applying Autoregressive Distributed Lag (ARDL) time series econometric technique. Trade openness is the main independent variable, whereas population, foreign direct investment, and non-renewable energy are used as control factors. The results obtained from co-integration test prove a long term relationship between CO2 emissions and trade openness. A study indicated that increased commercial openness leads to an increase in CO2 emissions, which promotes environmental degradation in Pakistan. It is proposed that trade policies take environmental protection into account.