Expanding RTAs, Trade Flows, and the Multinational Enterprise

We test the relationship between the size of regional trade agreements (RTA) and openness by using a gravity equation with multilateral trade factors. Our sample includes eleven RTAs, seven with constant membership and four with expanding membership. Regional trade bias declines with the size of the club; three of the four expanding RTAs have already surpassed their ‘optimal’ size. We also explore the link between openness of the RTA and the geographic strategy of the multinational enterprise. We find strong evidence in favor of the regionalization strategy, which has been enhanced by the presence of RTAs.Trade Blocks, Regional Integration, Multinational Enterprises (MNEs), Plurilateral RTAs, Trade Creation, Trade Diversion

Size of Regional Trade Agreements and Regional Trade Bias

We test the relationship between size of regional trade agreement (RTA) and regional trade bias using a gravity equation on a large sample of 143 countries for the period 1980-2003. We find that regional trade bias declines with the size of the club and that three of the four expanding RTAs have already surpassed their ‘optimal’ sizes. There is no evidence that RTAs have set protection levels against outsiders noncooperatively.RTA, regional trade bias, trade flows

On the Relationship Between RTA Expansion and Openness

We test the relationship between the size of regional trade agreements (RTA) and openness using a gravity equation with multilateral trade factors on a large sample of 143 countries over period 1980-2003. Our sample includes eleven RTAs, seven with constant membership and four with an expanding membership. In the first group, there are more stumbling blocs than building blocs to freer global trade. In the second group, the opposite holds. We also find that regional trade bias declines with the size of the club and that three of the four expanding RTAs have already surpassed their ‘optimal’ size.gravity equation, plurilateral RTAs, size, trade creation, trade diversion

Regional Multinationals and the Korean Comestics Industry

This paper analyzes the market penetration and expansion strategy of cosmetics and toiletries multinational enterprises (MNEs) in South Korea from the perspective of regional strategy as developed recently by Rugman. We find that MNEs have different market entry and expansion strategies in the home region and in the foreign region. Home region MNEs (Japanese MNEs in this case), in general, utilize their firm-specific advantages (FSAs) better than foreign region MNEs (European and MNEs from the Americas in this case). Due to differences in transaction costs, home region MNEs exploit downstream FSAs while foreign region MNEs develop upstream FSAs. Market similarity also leads to a greater incentive to operate in the home region rather than in foreign regions. The home region effect significantly increases the likelihood of entry into foreign markets as the host country’s “diamond” significantly affects the market entry strategies of MNEs.regional strategy, market penetration, cosmetics industry, double diamond, South Korea

The Regional Sales of Multinationals in the World Cosmetics Industry

This paper analyzes the regional characteristics and strategies of multinational enterprises (MNEs) in the world cosmetics and toiletries industry, based on the new work by Rugman on regional strategy. We test the proposition that MNEs may asymmetrically develop their upstream and downstream firm specific advantages (FSAs). We find that the upstream activities of the MNEs in cosmetics are home region based but that downstream activities are less so. Further, the asymmetry of FSAs in the world cosmetics industry is mainly due to the atypical Asian entry strategies of North American and West European cosmetics MNEs. Two case studies confirm how variations in FSAs can affect regional strategy.regionalism, regional strategy, cosmetics industry, firm specific advantage, Avon, Gucci

The Gravity Equation in International Economics and International Business Research: A Note

This note discusses methodological issues and practical concerns for international economists and international business scholars who apply the gravity equation in their research. The most important message of the note is that this equation should correct for multilateral resistance factors. We propose a relatively low-cost specification and estimation to implement such correction, which is robust in the presence of various endogeneity effects and non-stationary variables. In the presence of zero-values in the dataset, however, the multilateral specification is best estimated with a Poisson maximum likelihood.gravity equation, international trade, foreign direct investment, methodology

How does experience change firms' foreign investment decisions to non-market events?

We examine how experience with two types of non-market risks (e.g., natural disasters and armed conflicts) changes foreign direct investment (FDI) decisions. Extending research on organizational learning and FDI, we hypothesize that the greater the experience with recent, frequent and high-intensity risk, the more likely that experience can moderate the relationship between non-market risks and firm international expansion. Given a sample of 625 Fortune Global 500 firms and their investments in 117 countries between 1999 and 2008, we find that experience with recent, frequent, and high-intensity risk can change a firm?s FDI decision from risk avoidance to risk management

Symmetry-Protected Solitons and Bulk-Boundary Correspondence in Generalized Jackiw-Rebbi Models

We investigate the roles of symmetry and bulk-boundary correspondence in characterizing topological edge states in generalized Jackiw-Rebbi (JR) models. We show that time-reversal ($T$), charge-conjugation ($C$), parity ($P$), and discrete internal field rotation ($Z_n$) symmetries protect and characterize the various types of edge states such as chiral and nonchiral solitons via bulk-boundary correspondence in the presence of the multiple vacua. As two representative models, we consider the JR model composed of a single fermion field having a complex mass and the generalized JR model with two massless but interacting fermion fields. The JR model shows nonchiral solitons with the $Z_2$ rotation symmetry, whereas it shows chiral solitons with the broken $Z_2$ rotation symmetry. In the generalized JR model, only nonchiral solitons can emerge with only $Z_2$ rotation symmetry, whereas both chiral and nonchiral solitons can exist with enhanced $Z_4$ rotation symmetry. Moreover, we find that the nonchiral solitons have $C, P$ symmetries while the chiral solitons do not, which can be explained by the symmetry-invariant lines connecting degenerate vacua. Finally, we find the symmetry correspondence between multiply-degenerate global vacua and solitons such that ${T}$, ${C}$, ${P}$ symmetries of a soliton inherit from global minima that are connected by the soliton, which provides a novel tool for the characterization of topological solitons

Application of Artificial Neural Network to Search for Gravitational-Wave Signals Associated with Short Gamma-Ray Bursts

We apply a machine learning algorithm, the artificial neural network, to the search for gravitational-wave signals associated with short gamma-ray bursts. The multi-dimensional samples consisting of data corresponding to the statistical and physical quantities from the coherent search pipeline are fed into the artificial neural network to distinguish simulated gravitational-wave signals from background noise artifacts. Our result shows that the data classification efficiency at a fixed false alarm probability is improved by the artificial neural network in comparison to the conventional detection statistic. Therefore, this algorithm increases the distance at which a gravitational-wave signal could be observed in coincidence with a gamma-ray burst. In order to demonstrate the performance, we also evaluate a few seconds of gravitational-wave data segment using the trained networks and obtain the false alarm probability. We suggest that the artificial neural network can be a complementary method to the conventional detection statistic for identifying gravitational-wave signals related to the short gamma-ray bursts.Comment: 30 pages, 10 figure