Magister Philosophiae - MPhil / This study seeks to provide answers on whether South Africa should ratify the Convention on Contracts for the International Sale of Goods (CISG), in the light of promoting legal certainty and International trade. In order to address the main objective, the mini-thesis will seek to answer the following questions: 1. Evaluate the current functional Legal Framework for international sale of goods in South Africa. 2. Establish and evaluate the motivations for both accession and non-accession, including an examination of possible advantages and disadvantages arising from each. 3. Determine if the adoption of the CISG by South Africa will be a solution to the current problems and uncertainties that exist under South African Law with regards to the international sale of goods?

The goal of this thesis is to present a meta-analysis of studies that are focused on the relation between the international trade flow and the trade costs. The effect of trade costshasbecomeoneofthekeyelementstoresolvethesixmajor puzzles in the bilateral trade flow. I examine 1,090 estimates of the trade cost effect reported in 58 studies, codify 51 aspects of study design that may influencetheestimates.Iuse meta-regression analysis to investigate why trade costs effects vary. The results suggest that different methods and mainly data characteristics systematically affect the estimated trade costs effects. I find evidence for publication selection bias by using the appropriate tests. The authors of primary studies tend to report preferentially large estimates of the elasticity of trade with respect to trade costs. The evidence for publication selection bias is stronger for studies reported in peer-reviewed journals thanfor unpublished studies.

The necessity for a more adequate regulation of global trade relations (including support for the liberalization and development of international trade), in the context of the deepening globalization processes, requires a greater level of involvement of international economic organizations and more effective implementation of their activities. The primary purpose of the dissertation is to determine whether and how the World Trade Organization, the United Nations Conference on Trade and Development, the International Monetary Fund and the World Bank Group have influenced the development of international trading system. The results of this thesis show that international organizations (primarily WTO and UNCTAD) during various stages of its development have been significantly affecting international trade growth mainly through the implementation of specific activities and measures related to a series of agreements and decisions. However, international organizations have had a divergent impact on international trade. The effectiveness of the implementation of specific activities and programs were depending on the political and economic situation of member countries, as well as the governments´ readiness and willingness to implement these measures. On the other hand, the effectiveness of realization of specific activities have been affected by either the internal weaknesses of the organizations, or the insufficient level of cooperation and coordination in the implementation of joint programs and measures aimed at international trade development.

What explains public opinion toward economic globalization, and specifically, toward international trade? A wave of recent scholarship has shown that symbolic and identity-based factors--individual predispositions such as ethnocentrism, nationalism, prejudice, and cosmopolitanism--are highly correlated with attitudes toward trade. The nature of the relationship between symbolic attitudes and trade opinion, however, remains conspicuously unclear. This dissertation combines fresh empirical strategies with the theoretical tools of both economics and psychology to illuminate the role and effect of non-material factors in the formation of public opinion toward international trade. I present a new theoretical framework for the study of individual preferences in international political economy, and test the empirical implications of the theory using observational data, an original survey experiment, and systematic analysis of open-ended survey responses. Specifically, I show: (1) that symbolic attitudes such a prejudice have a causal effect on trade preferences, independent of economic considerations; (2) that the effect of economic self-interest on trade preferences is contingent upon the strength of symbolic attitudes; and (3) that the trade preferences of cosmopolitan individuals are susceptible to the effect of subjective beliefs about the impact of trade on foreigners, providing the first evidence of foreign-regarding motivations in the context of trade opinion. / Government

Essay I: Credit Constraint and College Attendance.  This paper shows that housing wealth alleviate credit constraints for potential college attendees by enabling home owners to extract equity from their property and invest it in the education. Using a large US individual-level survey dataset over the 1996-2011 period, I find that one standard deviation increases of housing prices translate into approximately 72,000 more students enrolled in college each year. My results stay significant when I use proxies for aggregate housing demand shocks and for the topological elasticity of housing supply to generate variation in home equity that is assumed to be orthogonal to decision of going to college. Essay II: Income Inequality and Trade. Does trade with unskilled labor-abundant countries reduce the relative wages of U.S. unskilled labor and consequently cause increased income inequality across industries and regions? Empirical studies in the 1990s found only a modest effect. In this paper, I re-consider the question by using the income inequality measures constructed from Current Population Survey (CPS) data and analyzing the effect of rising Chinese import competition between 1993 and 2007 on US local labor markets. I find that areas which are more exposed to China imports competition have larger changes in income inequality. In my main specification, a $1,000 exogenous decadal rise in a MSA's import exposure per worker leads to a 1.5% increase in the logistic Gini. This re-distributive effect is more profound among non-college educated workers in manufacturing sectors.  Essay III: Employee as Creditor: Evidence from Defined Pension Plans. In this paper, I show the role of pension plans in shaping the firms' labor market decision. By employing the loan covenants violation and consequently transferring of control rights to creditors, I examine the strategic use of pension underfunding by firms and the resultant wage cuts. I also find that the wage concession is less severe for firms from industry with bigger bargaining power. This study sheds light on how firms strategically renegotiate labor contracts to extract concessions from labor. The evidence suggests that credit contracts between debt-holders and shareholders have spillover effects on non-financial stakeholders.

This dissertation consists of three essays on different aspects of water management. The first essay focuses on the sustainability of freshwater use by introducing the notion that altruistic parents do bequeath economic assets for their offspring. Constructing a two-period, over-lapping generational model, an optimal ratio of consumption and pollution for old and young generations in each period is determined. Optimal levels of water consumption and pollution change according to different parameters, such as, altruistic degree, natural recharge rate, and population growth. The second essay concerns water sharing between countries in the case of trans-boundary river basins. The paper recognizes that side payments fail to forge water-sharing agreement among the international community and that downstream countries have weak bargaining power. An interconnected game approach is developed by linking the water allocation issue with other non-water issues such as trade or border security problems, creating symmetry between countries in bargaining power. An interconnected game forces two countries to at least partially cooperate under some circumstances. The third essay introduces the concept of virtual water (VW) into a traditional international trade model in order to estimate water savings for a water scarce country. A two country, two products and two factors trade model is developed, which includes not only consumers and producer’s surplus, but also environmental externality of water use. The model shows that VW trade saves water and increases global and local welfare. This study should help policy makers to design appropriate subsidy or tax policy to promote water savings especially in water scarce countries.

Africa is acknowledged as a vast, untapped market for consumer goods as trade barriers are coming down and economies are starting to develop. The need for consumer goods arises with economic activity. This poses the following question, which will be addressed by this research: How can potential African consumer markets be successfully unlocked by a South African beverage organisation, thereby reducing risk of failure and eliminating the cost of a hit-and-miss approach? The secondary study focused on evaluating the aspects involved with risks and the modes of entry into foreign markets. The macro-environmental factors affecting the expansion into foreign markets were investigated to determine what influence they had on the entry mode chosen for a specific country targeted for expansion. Finally the marketing factors influencing the entry mode were analysed. The significance of trade blocs together with the advantages thereof was included in the study. The primary study was based on the theory and principles of existing literature. The Coca-Cola Sabco organisation was taken as a case study. Four countries, namely Kenya, Uganda, Mozambique and Namibia, were investigated. Questionnaires containing a set of questions to satisfy the sub-problems were sent to the various country managers and their first layers of management. Likewise, interviews were conducted with Coca-Cola Sabco head office strategic management. The empirical results obtained, indicated a strong concurrence, with the theory of entry modes and the influences of macro-environmental factors. In certain aspects, however, some contradictions with the theory pertaining to the Coca-Cola Sabco organisation, were observed. The findings concurred with the theory in that risk were minimised by the acquisition of a going concern that already possessed the infrastructure and logistics such as raw material procurement, manufacturing staff skills, distribution networks and political contacts. The empirical results contradict theory with respect to location economies and scale economies, as the Coca-Cola Company’s franchise agreement excludes the exporting of beverage products. Furthermore, Coca-Cola Sabco becomes involved in expansion initiatives only in reaction to an invitation from the Coca-Cola Company and not of its own desire. Therefore, market surveys are conducted subsequent to an invitation from the Coca-Cola Company. South African organisations planning expansion initiatives into emerging African markets need to take the specific macro- environmental factors of the country in question into consideration in order to minimise risk. A franchise agreement restricting exporting as in the case of Coco-Cola Company or any other restrictive agreement, might cause a deviation from contemporary theory, for example, where markets will be assessed for purposes of location and scale economies. Deviations from contemporary theory could also occur where a franchise opportunity is offered in a specific country that may not be the preferred market choice, due to its lack of growth potential.

Since 1994, the opening up of the South African economy has presented South African companies with opportunities to exploit the bigger global market and also with challenges of competing with international companies. Companies must consider both external environmental forces and internal organizational factors before arriving at a suitable international strategy. This treatise explores the wiring harness industry in the Nelson Mandela Bay to determine whether the industry is adopting international strategies in line with globalization, thus ensuring sustained growth and profitability. A literature survey was conducted to discover the main strategies that are used by companies in order to achieve global competitiveness. These strategies were used in conjunction with Porter's (1990) theory of National Competitive Advantage to analyse the wiring harness industry in the Nelson Mandela Bay. Porter's (1990) theory of National Competitive Advantage was used to analyse the competitiveness of the wiring harness industry in the Nelson Mandela Bay. A questionnaire was developed to test the degree to which the wiring harness industry in the Nelson Mandela Bay is in agreement with the findings of the literature study. This information was used to determine whether the wiring harness industry in the Nelson Mandela Bay is following global trends to remain profitable.

An agreement on the inclusion of a social clause in the World Trade Organization‟s (WTO) multilateral trade agreements largely depends on reassuring objecting member states that such inclusion will contribute to an improved recognition of core labour standards in trade, without altering the competitive advantage of one trading partner over another. Reassurance must be given to the effect that incorporating a social clause in the WTO legal framework would not be used as a trade restricting mechanism which might have direct, negative effects on the development of countries worldwide. Such an argument may not be won easily from a legal and economic perspective. There is an omnipresent conflict at the international level between the basic values underlying multilateral trade agreements and principles governing the protection of core labour standards. On the one hand, supporting the stance of free trade is the fundamental force of profit maximization while on the other hand, and in direct opposition to this market driven value system, are human rights-based calls for recognising core labour standards in employment matters related to trade. Increased international trade is a powerful tool for tackling poverty and social misery worldwide. It could thus be important to adopt a legal framework in the multilateral trade system to harness potential opportunities a trade-labour linkage could provide. In that case, the legal questions of whether or not there should be a tradeoff between the right to trade and compliance with core labour standards and whether a social clause in the WTO would achieve this purpose had to be addressed. However, without a compatible underpinning legal framework of universally accepted trade-labour standards, incorporating a social clause in the WTO would be a misplaced legal objective which is unachievable as it could lead to a conflict between the WTO and the International Labour Organisation (ILO) and at most could create a legal fiction whose results may not be positively measurable. Setting two international legal norms at conflict with each other is systematically studied as a conflict in which the values of the global market economy are in a supposed confrontation with those protecting core labour standards as human rights. Therefore, this study undertook a contemporary legal analysis of the possibilities and challenges of incorporating a social clause in the WTO for purposes of entrenching the protection of core labour standards. It put forward arguments and tentative proposals for a trade-labour linkage legal framework which could dispel calls for excluding a social clause in the WTO.

This study endeavors to explore the value of informal cross-border trade to household poverty reduction. Informal cross-border trade has become a panacea to most Zimbabweans both employed and unemployed in the middle of the socio-economic crisis which has eroded the standards of living in Zimbabwe. This study is an eye opener to those who view informal cross-border trade as merely a survival strategy. It explores the efficacy of informal cross-border trade as a poverty reduction strategy looking at its viability and sustainability despite criticism by many people who associate informal cross-border trade with all kinds of negativity. It thrusts forward the agenda of participatory poverty reduction agenda within a nexus of partnerships and relationships between the government, non-governmental organization, institutions and families. Informal cross-border traders have maneuvered their way out of the chains and shackles of poverty even though it has been tough due to many obstacles from different angles. They have helped to distribute the scarce goods and products in Zimbabwe as a consequent of the socio-economic crisis. If they are given a better platform they can 5 perform much better than they are getting at present. Thus this study advocates the forging of networks between various stakeholders in both the formal and informal sector in order to fight against poverty.