Success Factors of Small and Medium-Sized International Enterprises in the Chinese Market from the Perspective of Polish Direct Investment (Cultural Approach)

Globalization has resulted in increasing transfer of firms operations, regardless of their size, to other countries. The recent dynamic emergence of China in the global economy, connecting with the vast inflows of foreign direct investment in their territory and common adjustments problems of many Western companies, has resulted in growing interest for best suitable business practices to this culturally and socially different environment. In this article, the key factors critical to the success of international companies in this region are introduced, with particular consideration to indigenous cultural elements and specific operation requirements of small and medium-sized enterprises in Business-to-Business sectors. The presented information are based on the broad literature review, five years of direct observation and thirty eight interviews conducted with Polish managers directly residing in China. In addition, some practical recommendations for managers and further research are given.Globalizacja wymusza na firmach, niezależnie od ich wielkości, coraz częstsze przenoszenie operacji do innych krajów. Dynamiczne pojawienie się Chin w światowej gospodarce i szeroki napł;yw zagranicznych inwestycji bezpośrednich na ich teren oraz problemy adaptacyjne wielu zachodnich przedsiębiorstw, spowodował;y zainteresowanie najlepszymi praktykami biznesowymi dostosowanymi do tego odmiennego kulturowo i społ;ecznie otocznia. W artykule zaprezentowane został;y najważniejsze czynnik mające wpł;yw na osiągnięcie sukcesu przez firmy międzynarodowe na tym obszarze, ze szczególnym uwzględnieniem aspektów kulturowych i specyfiki dział;ania mał;ych i średnich podmiotów na rynkach B2B. Prezentowane informacje są oparte na przeglądzie literatury, pięcioletnich obserwacjach bezpośrednich oraz trzydziestu ośmiu wywiadach przeprowadzonych z menadżerami polskich przedsiębiorstw odpowiedzialnymi za operacje w Chinach. Dodatkowo wskazano kilka praktycznych rekomendacji menadżerskich oraz możliwości dalszych badań

What Will Technology Do to Financial Structure?

This paper looks at how advances in information and telecommunications technologies have been changing the structure of the financial system by lowering transaction costs and reducing asymmetric information. Households and smaller businesses can now raise funds in securities markets as financial institutions have become better at unbundling risks while financial products can be distributed more efficiently through electronic networks. These changes have reduced the role of traditional financial intermediaries overall efficiency by lowering the costs of financial contracting. Despite these benefits technological progress presents policymakers with some important challenges. First markets for financial products become larger and more contestable, defining geographic and product markets narrowly becomes more problematic. Second, financial consolidation and the trend towards new activities of financial intermediaries require the exploration of new methods to preserve the safety and soundness of the financial system. A combined system of vigilant supervision and constructive ambiguity to deal with failures of larger institutions should be capable of mitigating the potential for increased risk-taking and help preserve the health of the financial system.

Competitive Effects of Partial Ownership: Financial Interest and Corporate Control

In this article, we set up an economic framework for analyzing the competitive effects of partial ownership interests. We have three main goals. First, we conceptually derive and explain the competitive effects of partial ownership, explaining its key elements and drawing analogies to the key ideas behind the analysis of horizontal mergers. Second, we present a general framework for evaluating the competitive effects of partial ownership that is analogous to, but at the same time recognizes key differences in the standard analysis for evaluating horizontal mergers. Third, we examine several methods of quantifying these competitive effects

Fighting Poverty, Profitably: Transforming the Economics of Payments to Build Sustainable, Inclusive Financial Systems

The Gates Foundation's Financial Services for the Poor program (FSP) believes that effective financial services are paramount in the fight against poverty. Nonetheless, today more than 2 billion people live outside the formal financial sector. Increasing their access to high quality, affordable financial services will accelerate the well-being of households, communities, and economies in the developing world. One of the most promising ways to deliver these financial services to the poor -- profitably and at scale -- is by using digital payment platforms.These are the conclusions we have reached as the result of extensive research in pursuit of one of the Foundation's primary missions: to give the world's poorest people the chance to lift themselves out of hunger and extreme poverty.FSP conducted this research because we believe that there is a gap in the fact base and understanding of how payment systems can extend digital services to low income consumers in developing markets. This is a complex topic, with fragmented information and a high degree of country-by-country variability. A complete view across the entire payment system has been missing, limiting how system providers, policy makers, and regulators (groups we refer to collectively as financial inclusion stakeholders) evaluate decisions and take actions. With a holistic view of the payment system, we believe that interventions can have higher impact, and stakeholders can better understand and address the ripple effects that changes to one part of the system can have. In this report, we focus on the economics of payment systems to understand how they can be transformed to serve poor people in a way that is profitable and sustainable in aggregate

Assessing the Constraints and Opportunities for Private Sector Participation in Activities Implemented Jointly: Two Case Studies From the U.S. Initiative for Joint Implementation

This paper assesses the constraints and opportunities for private-sector participation in Activities Implemented Jointly under the United Nations Framework Convention on Climate Change. After some initial background, the discussion turns to the United States Initiative on Joint Implementation (USIJI)—its objectives, proposal review and evaluation criteria, and a classification of project proposals by project type and stage of development. Two USIJI projects are developed as case studies. One case is an energy end use project that has gained formal acceptance and financing. The other case is an energy production project proposal that has not secured acceptance or financing. In both cases, transaction costs were substantial, and project proponents regarded gaining formal host country acceptance as the principal impediment to project development. The cases illustrate how the host country JI project approval process can become entangled in broader struggles over economic reforms. The cases also suggest that JI project proponents may have divergent perspectives on the speculative value of greenhouse gas (GHG) credits. An enforceable cap on GHG emissions in the project funders’ countries, which is a prerequisite to establishing any market for the credits, is contrary to the position of energy and power suppliers who promote voluntary emissions reductions. For emissions reduction technology firms, however, establishing a value for GHG credits would help generate demand for the firms’ stock in trade. Finally, the study underscores that notwithstanding transaction costs associated with JI proposal development and acceptance, financing remains the ultimate hurdle to project implementation.

Relationship Banking, State Co-Ordination and Long-Term Debt: Reinterpreting the Big Push

We develop a lending game in which relationship-specific investments by firms benefit banks and vice versa. We show that even if all firms and banks prefer high-tech relationship loans under the first-best, asymmetric information and investment non-contractibility make them choose low-tech transaction loans. However, governments with intermediate risk ratings can use Groves subsidies for a concerted switch to long-term relationship loans. To avoid premature liquidation, they finance the scheme with long-term foreign debt. Thus, we try to explain the positive correlation between subsidies and long-term domestic and foreign debt, which was a salient feature of the East Asian development experience.Relationship Banking; Groves Subsidies; Intermediate Rating; Long-term Debt

European exchange trading funds trading with locally weighted support vector regression

In this paper, two different Locally Weighted Support Vector Regression (wSVR) algorithms are generated and applied to the task of forecasting and trading five European Exchange Traded Funds. The trading application covers the recent European Monetary Union debt crisis. The performance of the proposed models is benchmarked against traditional Support Vector Regression (SVR) models. The Radial Basis Function, the Wavelet and the Mahalanobis kernel are explored and tested as SVR kernels. Finally, a novel statistical SVR input selection procedure is introduced based on a principal component analysis and the Hansen, Lunde, and Nason (2011) model confidence test. The results demonstrate the superiority of the wSVR models over the traditional SVRs and of the v-SVR over the ε-SVR algorithms. We note that the performance of all models varies and considerably deteriorates in the peak of the debt crisis. In terms of the kernels, our results do not confirm the belief that the Radial Basis Function is the optimum choice for financial series

The Future of Central Banking in the Changing Financial Environment

During the last decades there were deep technology-driven changes in financial systems of many countries. The result was the decreasing demand for cash and commercial banks’ liquid reserves. The decreasing demand for central bank money has changed the operational side of the monetary policy. The maturities of open market operations have been shortened substantially. The reserve requirements were lowered or eliminated. The changes lead to a decrease in the volume of the monetary base, but the demand for central bank money will not vanish. Even with zero reserve ratio commercial banks will keep cash balances with central banks to settle their transactions. Thus, there will be a demand for banks’ liquid reserves and cash. Despite the decreasing demand for the monetary base, the central banks ability to influence the level of short-term interest rates will not be impaired, because central banks will continue to play the role of clearing houses for the banking systems. The central bank ability to conduct monetary policy does not depend on the volume of the monetary base, but on the demand for interbank settlements made by central bank. This is not the size of the monetary base either, that decides about the effectiveness of the monetary policy. Monetary authorities can influence interest rates via the payment system, which is typically based in central bank. The consequence of the decrease in the monetary base will be a fall in seigniorage income, but this will not impair central banks ability to conduct monetary policy. Interbank settlements must be located in central banks due to their reliability and the ability to play the role of lenders of last resort. As the central banks will stay as the institutions refinancing the payment system, they will decide about the level of short-term interest rates. Electronic money will not change the situation, because if this kind of money is to be widely accepted, it has to be exchanged into central bank money.monetary policy, monetary base, interbank settlements

The Impact of Electronic Markets on B2B-Relationships

Although most of the predicted consequences of the internet-revolution in the 90s did not become reality, the internet has lead to sustainable hanges in the organization of most industries. In particular, this is true for business-to-business (B2B) relations between firm. An obvious `proof' for this is the rising number of so-called electronic markets--- especially for B2B transactions---since several years. This paper should help to give a better understanding of the organizational impacts of electronic markets in the context of B2B relations. Therefore we use the incomplete contract framework to build a simple model of a repeated game. It will be shown that the existence of an (alternative) electronic market could influence the willingness to cooperate between the up- and the downstream firm in a B2B-relationship. In our special case, the willingness to cooperate by the buyer will decline.Electronic Markets; Business-to-Business; Industry Structure;