International Journal of Diplomacy and Economy (5 papers in press)
Transaction costs in international production and trade, and the demand for government intervention; a survey amongst entrepreneurs in the Netherlands
by Ebel Berghuis, Frank Den Butter
Abstract: Transaction costs play a major role in international trade and the internationalization of production with fragmented supply chains. A survey among companies in the manufacturing industry and services sector in the Netherlands provides insight into the relative importance of various types of transaction costs when organising production internationally. The survey also provides information about which forms of government interventions in order to reduce transaction costs are to be considered useful and appropriate by the respondents. These answers are confronted with arguments from the theory of public sector economics and of economic diplomacy to reduce transaction costs, for instance by internalising externalities, by promoting knowledge spill-overs and by providing infrastructure with the character of a public good. The survey shows that about half of the respondent companies assess government interventions as important. This assessment holds more or less true for all types of government interventions. rnrn
Keywords: commercial policy,rnnontariff barriers; rnoutsourcing,rnmanaging transaction costs,rnsurvey analysis,rn economic diplomacy; rncountry branding,rnglobal value chains.
EFFECTS OF DIFFERENT TYPES OF FRAMING IN ADVERTISING MESSAGES ON HUMAN DECISION BEHAVIOUR
by Birgit Burböck, Viktoria Kubli, ANITA MAČEK, Vito Bobek
Abstract: This paper seeks to investigate the occurrence of a framing effect in advertising messages when confronted with different types of frames. A quantitative study, conducted by the authors showed that positively and negatively framed advertising messages were created for the attribute framing type and the goal framing type. Furthermore, there exist significant differences in human choice behaviour due to the framing of the message in the attribute frame and in the goal frame. Participants in the positive framing condition of the attribute framing experiment reached higher scores to all three measured dimensions than those assigned to the negatively framed advertising message. Also in the goal framing experiment, subjects were found to prefer the positively framed advertising message. These results suggest that a framing effect is occurring in the attribute framing type and in the goal framing type due to the different framing of the advertising message.
Keywords: framing effect; attribute framing; goal framing; advertising message; human choice behaviour; prospect theory.
Diplomatic engagement with transnational corporations: a path to sustainable governance
by Wilfried Bolewski
Abstract: Abstract : Recent empirical studies show that the concept of Corporate Diplomacy is encountering reluctance from the business side for economic, political and educational reasons and from government side due to economic, political and educational objections to participative leadership in foreign affairs.
This diplomatic practitioners policy paper takes up the challenges to analyse the causes for reluctance and objections to diplomatic engagement with transnational corporations and points out ways to overcome them through inducements and change of mindset of CEOs as well as government representatives. The challenges of globalization (such as geopolitical shocks, terrorism, politically motivated trade restrictions) provide incentives for collaborative relationships and processes of common crisis management. The author indicates practical steps and missions to follow in the government/business collaboration process to deliver sustainable solutions to joint problems.
With the partnered practice of Corporate Diplomacy transnational corporations become envolved in sustainable, whole-of-society governance.rn
Keywords: Keywords : reluctance to Corporate Diplomacy ; diplomatic engagement with transnational coporporations ; participative leadership ; collaborative partnership ; whole-of-society governance.
Feudalism, Ethnic Conflicts and Economic Geography: Political Economy of ECO Countries
by Muhammad Ayub Mehar
Abstract: A continued history of economic deterioration in the Central Asian States, Afghanistan and Pakistan over the several decades indicates some chronic issues in the roots of economic and political system, which emphasize the changes in their legislation to govern the economy. The fiscal and monetary policies and small administrative and political changes cannot provide the required measures for sustainable development and improvement in the economic rankings of
these countries. It is envisaged that incidence of feudalism, ethnic politics, terrorism, fiscal imbalances, and economic miseries are interconnected variables which are determining the patterns of economic directions in ECO member countries. In fat, the globalization and regional integration are required to boost the economic growth in the region. The revival of the history of
multiculturalism in this region may abolish the ethnic and religious biases and improve the economies of ECO countries dramatically. However, the land and natural resources under the control and possessions of powerful groups do not favor the regional integration or globalization. Their strong influence on the economic governance, political system and administrative institutions does not allow economic freedom and integration. The existence of feudalism can fail the democratic institutions and does not allow the economic freedom. It controls over the prime economic resources and legislative bodies. Feudal protects to each other by mutual alliance through control over the parliament and civil service institutions.
Keywords: ECO; CAREC; Regional Integration; Feudalism; Economic Freedom.
Elusive Partners: Defining Canadas Relationship with Brazil in the 21st Century
by W. E. (Ted) Hewitt
Abstract: Over the course of the past several decades, Canadas bilateral relationship with Brazil has been something of an enigma, marked both by periods of productive collaboration and relatively intense diplomatic conflict. In order to gain a broader understanding of the nature and consequences of this interaction, this paper explores recent patterns of bi-national exchange in three critical areas: diplomacy, economic trade, and the movement of people. By examining linkages across the three areas, the analysis reveals a much more complex pattern of interaction between the two countries than has been previously imagined, particularly with respect to the impact of Canada-Brazil diplomatic interchange on the other two areas under study--trade and mobility.
Keywords: Canada Brazil Relations Trade.