Thesis (M.S. in Program Management)--Naval Postgraduate School, December 2003. / Thesis advisor(s): Richard Doyle, Raymond Franck. Includes bibliographical references (p. 111-120). Also available online.

The thesis was written against a backdrop of increasing international competition in the construction consulting sector when, at the same time, there was apparent growth in the requirements of developing countries for technology transfer. The opening chapters describe the industry including specific aspects of the British sector. A theoretical review is given on the eclectic theory, the stages of development approach, strategic theory and professional services literature, as well as technology transfer material and empirical studies relevant to the sector. The study itself is based upon a series of personal interviews with a range of construction firms, leading to sixteen cases being compiled, mostly for consulting firms but also for client organisations, aid agencies, contractors and suppliers. The interviews were also used to test hypotheses in four main areas of concern, covering the nature and extent of technology transfer, types of projects and firm, cooperative arrangements and long term implications. There were a number of findings: In construction consulting, technology transfer, consisting mainly of management know-how, is increasingly being required by overseas clients and aid agencies. Technology transfer changes the organisational structure of a firm, due to the greater need for staff at senior levels, with International experience. Newly internationalised firms, often medium-sized, can sometimes by-pass the stages of internationalisation by locating directly in client offices on technology transfer projects; while joint ventures occur, the role of established subsidiary offices is diminishing. Unlike contractors, construction consultants can sustain competitive advantage over time via technology transfer projects; clients can be accessed more effectively at lower cost and market information on new projects can be gleaned more readily. Wider conclusions were also discussed which had relevance for international business theory and policy of host governments and firms alike.

No description available.

This dissertation contains three chapters on international trade and investment in children's human capital in developing countries. The first chapter examines the effects of changes in labor market opportunities for women on the bargaining power of women within households and, ultimately, on investment in children's human capital. I show that a positive demand shock for female labor in a woman's age category increases her bargaining power, and this raises investment in the health of girls relative to that of boys within the household. To identify this effect, I exploit the geographic heterogeneity in demand for younger versus older female labor within the Mexican export manufacturing sector and its differential changes across municipalities between 2002 and 2005. I find that a 1 percent increase in labor demand for older (mostly married) women, caused by a demand shock to the export manufacturing sector, raises the share of decisions made by the wife in a household by 1.3 percent and the chance of a daughter being in good health by 1.1 percent. Previous research has shown that school enrollment in developing countries responds to a change in the return to education generated by a change in demand in the export sector, that pays higher wages for a given skill level. In the second chapter of my dissertation, using data from Mexico, I show that the negative effects of a lower return to education are not limited to lower rates of school enrollment. Parents also respond to a decrease in the return to education for children, as a result of an increase in labor market opportunities for very young, unskilled labor in the export sector, by reducing spending on children's education even while they are enrolled at school. This suggests that parents respond along the intensive margin as well as on the extensive margin. Firm level studies offer mixed results on the effect of ex-ante liquidity constraints on firms' export status. The third chapter of my dissertation explores the same matter using a new methodology. I predict that, controlling for the firms' productivity level and given that firms were not exporters in the previous period, a larger appreciation of the real exchange rate should have a larger positive effect on the probability of less-liquidity-constrained firms becoming exporters. I test this prediction using a panel of Mexican manufacturing firms and find robust evidence in its support. / text

abstract / Economics and Finance / Doctoral / Doctor of Philosophy

TIlls thesis considers how the presence of firms that operate across national boundaries (multinationals) affect the way we think about several traditional economic issues. Chapter 1 provides some introductory remarks. Chapter 2 considers how the analysis of the impact of taxation on firms' investment incentives is affected by models of the multinational firm It looks at the way in which corporate income taxes affect firms' investment choices when these choices are of a discrete nature, and argues that in such situations the au!Yt1{1! tax rate is a better measure of the impact of tax than the matginal tax rate. Chapter 3 investigates whether there is empirical support for the model laid out in Chapter 2 by examining US-resident firms' choices over whether and how to serve the European market. These choices are modelled using fum level data with a structure that explicitly accounts for the outside options of not serving the European market or producing in the US and exporting to Europe. The empirical results indicate that the effective tZW'~ tax rate plays a part in determining where U.S. firms locate within Europe, conditional on having decided to locate production in Europe. Taxes do not appear to affect the choice between exporting to Europe or locating production there. One of the predominant theoretical models explaining the existence of multinational firms is based on the proposition that they have higher productivity than domestic firms, Chapter 4 empirically examines whether foreign-owned establishments located in the' UK have different characteristics than domesticowned, and in particular whether productivity levels vary systematically by ownership. Parameters of the production function are estimated for the UK car industry using a new establishment level panel data set. The results indicate that higher levels of output per worker in foreign-owned establishments is almost entirely explained by differences in factor usage levels.

In this thesis, trade with waste between developed countries and the third world will be presented to analyze whether waste‐trading can create a possible win-win situation. To carry on this question problem, three theories have been considered to explain why and how developing countries can be affected by international waste-trade. A few case-studies regarding waste-trade in developing countries such as, India, China and Vietnam, will show the situation of waste-trade today. These theories and case-studies will set the foundation for analysis and conclusion. To sum up, trade with waste is a complex problem that can affect the importing country in both positive and negative ways. If the negative externality that is caused by handling waste is controlled with a tax or regulation, trade with waste can be a win-win situation for the trading countries.

The first two chapters study the effect of foreign lobbies on trade policy of a country which is a member of a Free Trade Agreement (FTA). They rely on a monopolistically competitive political economy model in which the government determines external tariffs endogenously. In the first paper the effect of foreign lobbying under the FTA is examined empirically using Canadian industry-level trade data that allow differentiating of lobby groups by the country of origin. The analysis suggests that the presence of foreign lobbying has a significant effect on the domestic trade policy: the presence of an organized lobbying group in an FTA partner country tends to raise trade barriers while an organized lobbying group of exporters from outside of the FTA is associated with less protection. The second paper analyses political viability of FTAs and their effect on the world trading system in the presence of lobbying by organized foreign interest groups. I show that the FTA in the presence of an organized lobby group in a prospective partner country may cause an increase in the level of protection against imports from third countries and impede trade with non-member countries. I also find that foreign lobby may encourage the local government to enter a welfare-reducing trade-diverting FTA. Finally, I show that the FTA increases the lobbying power of the organized lobby groups of the member countries, which can potentially obstruct the viability of welfare-improving multilateral trade liberalization. The last paper shows that the reason for a higher capital-labor ratio observed for exporting firms is a higher capital intensity of their production technology. Exporters are more productive, more likely to survive and, hence, more likely to repay loans. A higher repayment probability causes creditors to charge lower interest rate and reduces the marginal cost of the firm when a more capital-intensive technology is used. Here, a reduction in international trade costs stimulates exporting firms to use more efficient capital-intensive technologies, while non-exporters switch to less capital-intensive ones. This within-industry change in the composition of technologies reinforces the productivity advantage of exporters and contributes further to industry-wide productivity improvement. The results of model simulations highlight that to 10% of welfare and productivity gains of trade liberalization come from the adoption of new technologies by existing firms in the industry, thus amplifying the effect of resource reallocation from firms' entry and exit.

<p>In most African countries the private sector provides the main impetus for economic growth, especially since countries started opening up their economics for foreign investment. Foreign investments have played an important role in the economic growth and development process. Consequently, the purpose of this work was to analyse the consequences of having a MAI in light of the proposed OECD Agreement, the implications it may have for developing countries in Africa, and the way forward towards a balanced multilateral Agreement.</p>

In the Chinese business environment, owner-managers of SMEs emphasize engaging in networking and are good at developing networks, especially personal networks (Guanxi). The primary purposes of the research were to ascertain whether there is a relationship between networking practice and business performance in the main city zones of SMEs making motorbike components in Chongqing; which types of networking are perceived to be more important and effective to improve business performance; and which types of networking are less likely to contribute to the business performance. The Chongqing motorbike industry is the predominant industry in Chongqing and is also the largest motorbike manufacturing cluster in China. The Chongqing motorbike components SMEs also produce the most motorbike components in China. Over 90 per cent of the required components can be locally supplied (Tzswj, 2004: Online). Therefore, the primary motivation for conducting this research comes from the recognition of the importance of networking practices (Guanxi) in the Chinese business environment and the realisation of the importance of the Chongqing motorbike components SMEs to the Chongqing motorbike industry. This research is to assist Chongqing motorbike components SMEs to improve business performance through appropriately engaging in networking practices. In turn, the Chongqing motorbike industry can be expected to consolidate and improve its market position in the long term. This research first discussed the related theories about networking and Guanxi. This is followed by the description of the Chongqing motorbike industry and its component industry, with specific description of the major problems associated with both industries as well as those associated with the external environment. Thereafter, the descriptive chapter is followed by the methodology used for the research and research findings and discussion. Finally, the recommendations and conclusions are followed. Findings from this research indicated that networking practices have a positive relationship with business performance of the motorbike component SMEs of the main city zones in Chongqing. In addition, each type of networking practice has a potential to facilitate business performance. In terms of the four types of formal networking: customer, supplier, competitor, and supporting networking, these were respectively realised as the first, second, third, fourth most contributive and effective type of networking. However, the respondents also considered that personal networking (Guanxi) was one of the most significant and essential networking activities that can facilitate the process of business performance. Based on the findings and the key problems of the Chongqing motorbike component industry, recommendations can be made to the SMEs on how to effectively engage in networking practices with all possible networking participants in order to obtain required resources that are essential to sustain and improve business performance of the motorbike industry of the main city zones in Chongqing. / Thesis (M.Comm.) - University of KwaZulu-Natal, Pietermaritzburg, 2009.