FALL 2008
VOLUME 9, NUMBER 2

CORRELATION OF UNCORRELATED ASSET CLASSES

Jeffry Haber and Andrew Braunstein

The study investigates the effect of budget deficits, economic growth, money supply and the price of oil on interest rates. We develop a theoretical framework to show how interest rates are determined. We test our model using quarterly data in the United States, Canada and Germany, seeking to explain both short-term and long-term interest rates. The results show that, generally, interest rates are not affected by changes in budget deficits, lending (qualified) empirical support to the Ricardian equivalence proposition. We also determine the effects of GDP growth, money supply and the price of oil on short-term and long-term interest rates in the three countries.


https://doi.org/10.51240/jibe.2008.1.1          PDF

IS THERE A DECLINE IN TEACHING ETHICS IN US BUSINESS SCHOOLS?

James P. Beaghan

With recent financial scandals at Global Crossing, Enron and WorldCom involving manipulation of company earnings and the collapse of shareholder values, there has been increased debate concerning ethical decision making among business leaders in America and abroad. This debate has been accompanied by an increased expectation that US business schools give more emphasis to ethics in their business curricula at both the undergraduate and graduate levels. With AACSB mandating the coverage of ethics in business school curricula for member schools, administrators and faculty have shown considerable latitude in the coverage of this topic. This paper looks at differences in the coverage of ethics in the business school curricula of two universities: one a public state university, one a private religious university, as well as trends in the coverage of ethics at several public and private universities cited in recent research articles.


https://doi.org/10.51240/jibe.2008.2.2          PDF

EXPORT SUBSIDIES AND CUSTOMS UNIONS

Jose Mendez-Naya and J. Tomas Gomez-Arias

This paper explores how the formation of customs unions affects the argument for export subsidies in imperfectly competitive international markets. It is shown that the existence of customs unions may eliminate the incentive for their members to subsidize exports as customs unions grow larger. Therefore, it can be affirmed that regionalism and multilateralism are complementary processes.


https://doi.org/10.51240/jibe.2008.2.3          PDF

FISCAL POLICY AND ALTERNATIVE SOURCES OF PUBLIC CAPITAL IN TRANSITION ECONOMIES: DIASPORA BOND

Aleksandr V. Gevorkyan

State-sponsored projects in the transition economies often lack reliable finance sources as governments deal with orthodox policy limitations. At the same time reliance on relatively inconsistent natural resources export revenues, migrant remittances or conditional loans and foreign aid may not be adequate for long run development projects. One alternative is a Diaspora-sovereign bond program with a patriotic discount. Implied independent decision-making and fiscal responsibility will allow for strategic funds allocation, with an incentive for infrastructure and social initiatives investment with

strong feedback into a productive economy stimulating effective demand. Ultimately these components define modern fiscal policy and are fundamental to economic growth and development. Regulated via―State–Diaspora Supervisory Board,‖ a Diaspora bond may also serve as the initial or renewed access to the international capital markets, especially for smaller economies and those with low sovereign ratings.


https://doi.org/10.51240/jibe.2008.2.4          PDF

SOURCES AND USE OF MARKET INFORMATION: AN ANALYSIS OF SUCCESSFUL SMALL AND
MEDIUM SIZED EXPORTERS

Mark Burridge and Robert Bradshaw

This paper shows that most small and medium sized exporters do not undertake international marketing research. Given this finding the research goes on to consider successful exporters. These firms do engage in such research and their activities are therefore explored in detail. The empirical work shows that the firms make much greater use of in-house rather than external sources of information. The research also shows that successful firms put much greater emphasis on the information required for long term strategic planning. In addition, evidence is presented to suggest that the extent to which information is collected as well as the sources used by these companies is at least partly determined by firm size.


https://doi.org/10.51240/jibe.2008.2.5          PDF

THE EFFECT OF THE DYNAMIC RELATIONSHIP BETWEEN A CEO'S ATTITUDE,
THE LEARNING PROCESS, AND DOMESTIC MARKET SIZE ON INTERNATIONAL GROWTH

Jin Sup Jung

This study focuses on the importance of learning processes as international business processes, which mediate between a CEO’s attitude towards internationalization and international growth. In addition, this study deals with the moderating role of the domestic market munificence between the learning process and international growth. To verify the hypotheses, this study uses 102 Korean firms and the results obtained are as follows. Learning processes show positive effects on international growth. Furthermore, internal and external learning processes have mediating effects between a CEO’s attitude and international growth. The domestic market munificence has a negative moderating role with the internal learning process on international growth.


https://doi.org/10.51240/jibe.2008.2.6          PDF