Countertrade and the choice of strategic trading form

Reciprocal trade agreements, usually known under the generic name of countertrade (CT) have been traditionally seen as a form of bilateralism, and thus as an inefficient form of international exchange. Although contemporary trade theories do not fully explain the increasing prevalence of CT transactions, we will argue that it is possible to construct and use a third (hybrid) institutional form, which is congruent with the transaction-cost theories, and we will show how — under market imperfections — countertrade can reduce transaction costs while conserving the efficiency gains generated by these specific arrangements.Publicad

The assessment of credit guarantee schemes for SME's: valuation and cost

Small and medium enterprises (SME' s) have important limitations from the financial viewpoint. Their reduced capability to generate resources (self-financing) and their high financial costs as compared to the profitability of investments, makes them highly dependent of short-term bank financing. Among the different mechanisms used to solve these financial problems we find credit guarantee schemes as the Loan Guarantee Associations (LGA). These (mutual or government granted) credit insurance systems were set to facilitate the access of SME ' s to the credit market covering part of the loss incurred when borrowers default on a loan. In spite of some legal differences, LGA in most European Union countries function in a fairly similar way, making therefore easier to compare their operational cost and impact on business. This study provides a model for the valuation of the costs and implicit benefits associated with the loan guarantee programs. Empirical results indicate that the use of LGA is likely to differ among SME' s depending on company size and debt financial cost. The relatively high cost of the loan guarantee, is not always fully compensated with a similar reduction of the interest rates of the financing entity, hindering, in many cases, the full development of the schemes

Countertrade and the choice of strategic trading form.

Reciprocal trade agreements, usually known under the generic name of countertrade (CT) have been traditionally seen as a form of bilateralism, and thus as an inefficient form of international exchange. Although contemporary trade theories do not fully explain the increasing prevalence of CT transactions, we will argue that it is possible to construct and use a third (hybrid) institutional form, which is congruent with the transaction-cost theories, and we will show how — under market imperfections — countertrade can reduce transaction costs while conserving the efficiency gains generated by these specific arrangements.Barter; countertrade; transaction cost theory; asymmetric information; trading strategies;

Capital market inefficiencies, credit rationing and lending relationship in SME's

The financing of small-medium enterprises (SME' s) shows a great dependence on short term borrowing from banking institutions and savings banks. The causes of this situation are basically due to low credit availability at the stage of the firm' s life cycle when it requires the greatest access. A seminal paper by Fazzari, Hubbard and Petersen (1988) has served as the basis for important subsequent research. In Spain conclusions drawn by studies in this area mostly agree that the basic reason for the aboye mentioned low credit availability is high borrowing costs due to market imperfections which inevitably lead to credit ratioIÚng. The aim of this paper is twofold. First, to study the roles of firm-creditor relationships (Berger and Udell, 1992,1995; Petersen and Rajan, 1994, 1995) and Loan Guarantee Associations [LGA] in reducing information asymmetries in loan contracts and, second, to attempt to ascertain whether these factors are among the determining factors of loan rates for SME's

The financial cost of official export credit insurance programs of industrialized countries: an analysis

This paper seeks to clarify and evaluate the role and cost of public subsidies of Export Credit Insurance Programs in the OECD countries. Export finance is considered to be subsidized whenever credit or insurance is provided on bener tenns than is available in a competitive market. We use this definition to estimate OECD insurance subsidies and both absolute figures and so called rates of subsidization, related to insured and total exports, are presented. Assessing the effectiveness of these export promotion services is, however, a more complex issue. In spite of the apparently low rates of subsidization, there are several reasons for not disregarding the possible competitive effects of export insurance subsidies thoughtlessly as some countries have viewed with growing concern the funding and public involvement in export fmance as a new fonn of unfair competition in the international markets

Estructuras de propiedad, organización y canales de distribución de las empresas aseguradoras

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The Valuation and Cost of Credit Insurance Schemes for SME's: the Role of the Loan Guarantee Associations.

David Camino And Clara Cardone are both associate professors of Accounting and financeat the Department of Business economics at Universidad Carlos III de Madrid, Spain, Small and Medium enterprise (SEMs) have important limitations from the finanicial viewpoint. Their reduced capability to generate resources (Self financing) and their high finanical cost as compared with the profitability of investment, makes them highly dependent on short-term highly dependednt on short-term bank finanicing, among the different mechanisms used to solve these financial problems are credit guarantee schems such as Loan Guarantee Association (LGA). These (mutual or government granted) credit insurance system were set up to ease the acces of SMEs to the credit market by convering part of the loss incureed when borrowers deefaulted on lons. In spite of some legal differencde, LGAs in most European Union countries function in fairly similary ways, thereofre making it esier to compare their operationsl cost and impact on business. This study provides a model for the valuation of cost and implicit benefits associated with loan guarantee programmes. Empirical results indicate that the use of LGAs is likely to differ among SMEs depending on company size and ebt fincial cost. The relativel high cost of the loan guarantee is not always fully compensated with a similar reduction in the interest rates of the financing hindering the full development of the schemes.

A Cost Benefit Analysis from Instructor, Community Partner, and Student Perspectives: Cabrini College CBR Courses Merge Service, Education, and Research

Two community-based research (CBR) courses—Watershed Citizenship and Watershed Ecology—were piloted at Cabrini College in southeastern Pennsylvania. The courses connected service, education, and research using a local Pennsylvania stream, Crabby Creek, as the focal point, while working with several community partners. Course feedback using a qualitative student focus group regarding attitudes about environmental awareness, interdisciplinary thinking, and community-based, undergraduate research experiences showed that students gained a better understanding of how different disciplines can collaborate to address a problem in an integrative manner. Students also valued the faculty interdisciplinary team-teaching approach of the courses. We offer a model for designing and conducting an interdisciplinary team-taught CBR course employing instructors with different disciplinary backgrounds and areas of expertise. In this paper we present a case study in which we discuss the benefits and costs of these types of courses offered through the eyes of course instructors, community partners, and students and emphasize lessons learned that should prove helpful for others considering developing similar courses

The Expanding Universe of Prion Diseases

Prions cause fatal and transmissible neurodegenerative disease. These etiological infectious agents are formed in greater part from a misfolded cell-surface protein called PrP(C). Several mammalian species are affected by the diseases, and in the case of “mad cow disease” (BSE) the agent has a tropism for humans, with negative consequences for agribusiness and public health. Unfortunately, the known universe of prion diseases is expanding. At least four novel prion diseases—including human diseases variant Creutzfeldt-Jakob disease (vCJD) and sporadic fatal insomnia (sFI), bovine amyloidotic spongiform encephalopathy (BASE), and Nor98 of sheep—have been identified in the last ten years, and chronic wasting disease (CWD) of North American deer (Odocoileus Specis) and Rocky Mountain elk (Cervus elaphus nelsoni) is undergoing a dramatic spread across North America. While amplification (BSE) and dissemination (CWD, commercial sourcing of cervids from the wild and movement of farmed elk) can be attributed to human activity, the origins of emergent prion diseases cannot always be laid at the door of humankind. Instead, the continued appearance of new outbreaks in the form of “sporadic” disease may be an inevitable outcome in a situation where the replicating pathogen is host-encoded