Value creation by Turkish enterprises

This study focuses on the resurgence of the automotive and appliance sectors in Turkey’s recent years. The analysis of both these sectors reveals some interesting lessons about technology management and investment strategies for companies to invest in Turkey. We discuss the major changes and project the future in both industries. Turkey seems to be a clear winner though there are some factors that could reverse the trend. The research is a joint field study partne rship between Carnegie Mellon and Sabanci Universities

Components of Delivered Fuel Prices in Alaska

This is a systematic analysis of components of delivered fuel prices in Alaska. Data for the analysis include limited publicly available Alaska fuel prices (fall 2007 prices), as well as information the authors gathered from extensive interviews with fuel retailers and transporters, communities, and agencies. We identify the individual components of delivered fuel costs—including world price of crude oil, refining costs, transportation costs, storage and distribution costs, taxes and financing costs—and investigate how these factors influence the final retail prices of home heating fuel and gasoline. Transportation, storage, and distribution costs appear to be the most variable factors driving the large retail fuel price differentials among Alaska communities. Therefore, we investigate how factors such as seasonal icing, the number of fuel transfers enroute to specific communities, local storage and delivery infrastructure, marine and river characteristics, and distance from refineries or fuel hubs influence fuel prices. We did an in-depth analysis of how those factors influence prices in ten case study communities around the state—Allakaket/Alatna, Angoon, Bethel, Chitina, False Pass, Fort Yukon, Lime Village, Mountain Village, Unalakleet, and Yakutat. Together, the quantitative data and information on Alaska fuel logistics provide a comprehensive analysis of Alaska’s fuel prices.Alaska Energy AuthorityIntroduction / Crude oil prices / Refining / Fuel Product Transportation / Alaska Oil Taxes and Royalties / Subsidies and Assistance Programs / Comparative Case Study Results / Summary and Policy Implications / References / Appendix. Community Case Study Summarie

Persistent Uneven Spread of Economic Activities within Developing RIAs

One of the striking features of many developing Regional Integration Areas (RIAs) is the strong asymmetry between countries. In this paper, we consider a three-country two-sector model in a footloose capital framework. Two of these countries are involved in a regional integration process while the third is left out of the union. They are "port-like" economies where only one region is endowed with international infrastructures, so that imports and exports between trading partners necessarily pass through this transit region. The comparative statics of our model show that better domestic transport infrastructure helps to attract a higher share of footloose activity when trade costs within the RIA are lowered, inducing a persistent uneven spread of the mobile sector between the member countries. If the domestic infrastructure levels of these countries are both raised towards a high-quality level, a convergence process is triggered to the disadvantage of the country left outside the RIA.uneven development; regional integration area; convergence

Financial locations : Frankfurt’s place and perspectives

The introduction of a common currency as well as the harmonization of rules and regulations in Europe has significantly reduced distance in all its guises. With reduced costs of overcoming space, this emphasizes centripetal forces and it should foster consolidation of financial activity. In a national context, as a rule, this led to the emergence of one financial center. Hence, Europeanization of financial and monetary affairs could foretell the relegation of some European financial hubs such as Frankfurt and Paris to third-rank status. Frankfurt’s financial history is interesting insofar as it has lost (in the 1870s) and regained (mainly in the 1980s) its preeminent place in the German context. Because Europe is still characterized by local pockets of information-sensitive assets as well as a demand for variety the national analogy probably does not hold. There is room in Europe for a number of financial hubs of an international dimension, including Frankfurt

UNPLUGGED CITY Escaping from Global Networks and Flows Trap? New Geographies of Logistics :: Urban and Regional Implications

The urban and regional influence of contemporary passengers, goods and information traffic within the new global economy based on knowledge and logistics, and the physical structures that shape the networks (harbours, airports, train stations, motorways) are assumed as capitally important. Nevertheless, so far, the impact of these dynamics is much more attached to hierarchical processes of socio-spatial fragmentation-segmentation-polarization rather than balanced re-distributive systems. Global connectivity has as much strengths as threats, and the integration within the new production, consumption and distribution geographies generates as much opportunities as irreversible mutations. Unplugged City is presented as an incursion on connectivity and accessibility, exploring the strengths and threats derived from the management of logistics and freight transport flows within the frame of the so-called “catch-up†economy. The Trans-European Transport Network Plan (TEN-T) will be on focus as the main policy-making framework behind the new geographical transformation in Europe. The importance of the exponential growing freight transport and logistic sector has been exposed as a key factor to understand the bases of current globalisation. The sharp changes generated by the dropping of transport cost in patterns of production-consumption-distribution geographies have to be contrasted with deep transformations of labour market, linkages between transport and industrial location and new network models. What is close is just what is cheap. Distances nowadays are no measured in kilometres or hours but in Euros, imposing a new logic for the global geographic structure. Regions with better access to locations of input materials and markets are assumed to be more productive, more competitive and hence more successful than more peripheral and isolated regions. But this hypothesis has to be urgently reformulated, contrasting transport policies with quantitative research and the appraisal of real socio-economic impact of the new transport geographies. The assumed idea of connectivity as pure benefiting will be critically discussed as a much complex phenomena. Corridors are fostering the survival of core regional centres meanwhile a growing regional imbalance is monitored; regions that still have to deal with environmental, budgetary and indirect issues derived from the management of these flows.

TACA

The airline industry is energy intensive, has high fixed costs and its demand is very sensitive to the economic cycle. After the industry worldwide undergoes deregulation, starting with the United States in 1978, two distinct business models develop. Traditional carriers operate hub and spoke networks, offer onboard service and engage in price discrimination, whereas low cost carriers operate point to point, charge for all services and have simple tariffs. TACA begins operations in Central America in 1931 and, by 1943, has a footprint that extends from the United States to Argentina. In 1998–2001 TACA faces increased competition and a significant market downturn. In 2004 TACA CEO Roberto Kriete launches Centroamérica Fácil to stimulate air traffic in the airline\u27s base countries

Shifting Spatialities of Power: The Case of Australasian Aviation

This paper explores how different modalities, spatialities and scales of power operate in a geopolitical context. By tracing the dynamic and shifting economic geographies of state and firm power in the events leading up to the collapse of a major Australian firm, Ansett Airlines, it reveals the difference that place and position make to the creation and use of power. The paper stresses agents’ relational positioning, their ‘places’ in multiple networks of association and the ways in which their past actions and visions of the future condition their strategic options. The paper contextualises the workings of power and explores how power relationships are re-configured in specific contested events. It concludes that power cannot be separated from the spatial and temporal dimensions of actual contexts, from actor’s positions in contexts, or from their strategic objective

Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade

This paper addresses the final steps to global free trade -- the political economy forces that might drive them, and the role the WTO might play in guiding them. Two facts form the departure point: 1) Regionalism is here to stay; 2) the motley assortment of regional trade agreements is not the best way to organise world trade. Moving to global duty-free trade will require a multilateralisation of regionalism. The paper presents the political economy logic of trade liberalisation and uses it to structure a narrative of world trade liberalisation since 1947. The logic is then used to project the world tariff map in 2010, arguing that the pattern will be marked by fractals – fuzzy, leaky trade blocs made up of fuzzy, leaky sub-blocs (fuzzy since the proliferation of FTAs makes it impossible to draw sharp lines around the 3 big blocs, and leaky since some FTAs create free trade ’canals’ linking the blocs). The paper then presents a novel political economy mechanism – spaghetti bowls as building blocs – whereby offshoring creates a force that encourages the multilateralisation of regionalism. Finally, the paper suggests three things the WTO could do to help multilateralise regionalism.

Clear skies : the fight for dominance in the airline industry

Related link(s): http://www.richmondfed.org/publications/research/region_focus/2009/spring/feature3_weblinks.cfmAirlines

The theory of international business: the role of economic models

This paper reviews the scope for economic modelling in international business studies. It argues for multi-level theory based on classic internalisation theory. It present a systems approach that encompasses both firm-level and industry-level analysis