Gray Markets and Multinational Transfer Pricing

Gray markets arise when a manufacturer's products are sold outside of its authorized channels, for instance when goods designated for a foreign market are resold domestically. One method multinationals use to combat gray markets is to increase internal transfer prices to foreign subsidiaries in order to increase the gray market's cost base. We illustrate that, when a gray market competitor is present, the optimal price for internal transfers not only exceeds marginal cost, but is also a function of the competitiveness of the upstream economy. Moreover, the presence of a gray market competitor may cause unintended social welfare consequences when domestic governments mandate the use of arm's length transfer prices between international subsidiaries. When markets are sealed, arm's length transfer pricing strictly increases domestic social welfare. In contrast, we demonstrate that when a gray market competitor is present, mandating the use of arm's length transfer pricing decreases domestic social welfare when the domestic market is sufficiently large relative to the foreign market. Specifically, a shift to arm's length transfer pricing erodes domestic consumer surplus by making the gray market less competitive domestically, which in turn may offset any domestic welfare gains that accompany a shift to arm's length transfer pricing. Finally, the analysis illustrates that in a gray market setting, the transfer price that maximizes a multinational's profits may also be the same one that maximizes the social welfare of the domestic economy that houses it.transfer pricing, gray markets, regulation

Dissociation rates of J/psi's with comoving mesons - thermal vs. nonequilibrium scenario

We study J/psi dissociation processes in hadronic environments. The validity of a thermal meson gas ansatz is tested by confronting it with an alternative, nonequilibrium scenario. Heavy ion collisions are simulated in the framework of the microscopic transport model UrQMD, taking into account the production of charmonium states through hard parton-parton interactions and subsequent rescattering with hadrons. The thermal gas and microscopic transport scenarios are shown to be very dissimilar. Estimates of J/psi survival probabilities based on thermal models of comover interactions in heavy ion collisions are therefore not reliable.Comment: 12 pages, 6 figure

Sustainable Consumption and Production (SCP): A Country Case Study of the Philippines

This chapter examines the patterns of consumption and production in the Philippines and analyses their impact on the environment and climate, with a view to finding out whether they are environmentally sustainable or not. It presents the initial findings of the author's research on the topic of sustainable development in the Philippines. It notes the "double dividend" that the Philippines stands to gain from any action to "switch" consumption and production to more sustainable patterns

Measuring the impact of business: Sustainability Reporting by Corporations in Emerging Asia

This study addresses the issue of sustainability reporting by corporations, and the framework(s) and guidelines used in the preparation of those annual reports. It takes as its starting point the UN Sustainable Development Goal 12: “Ensure sustainable consumption and production patterns”, with its Target 12.6: “Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle”. And it is the Indicator 12.6.1: “Number of companies publishing sustainability reports” that provides the inspiration for the idea for doing this study. The study provides, firstly, a brief background on the group responsible for the sustainability reporting framework widely used by companies, the Global Reporting Initiative (GRI). This is followed with another short background on a second, though newer, group with another framework, the International Integrated Reporting Council (IIRC). The study presents - to the best of the author's knowledge - the first comparative study of corporate sustainability reports (and the frameworks used) across ten Emerging Asian economies. It proceeds to this core empirical contribution of the paper by explaining the process how the corporations in Emerging Asia were selected for inclusion in the study. It notes that the companies and the economies of origin were not picked directly for inclusion. The first step was to find reputable corporate sustainability rankings and ratings. Seven information sources yielded a list of 150 companies from ten Emerging Asian economies. These economies are: China, Hong Kong, India, South Korea, Taiwan, Thailand, Indonesia, Malaysia, Philippines and Singapore. It then presents the findings from a survey of the sustainability reports of the 150 corporations. Across the entire sample, almost 90 percent cite the use of the GRI guidelines. In three economies with more than just a handful of companies in the sample -- South Korea, Taiwan and Thailand -- all of their companies cite the GRI framework. However, the picture is not as one-sided in India, where less than half cite the GRI

Some Lessons from Korea's Industrialization Strategy and Experience

We look at Korea's industrialization strategy and experience from the 1960s to the mid-1990s. Three elements of the Korean industrial development and structural change are discussed: 1) its outward orientation and export push, 2) its climb up the ladder of comparative advantage, and 3) its economic management of the industrialization effort. Finally, we reflect on the lessons from the Korean experience

Measuring the impact of business: Sustainability Reporting by Corporations in Emerging Asia

This study addresses the issue of sustainability reporting by corporations, and the framework(s) and guidelines used in the preparation of those annual reports. It takes as its starting point the UN Sustainable Development Goal 12: “Ensure sustainable consumption and production patterns”, with its Target 12.6: “Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle”. And it is the Indicator 12.6.1: “Number of companies publishing sustainability reports” that provides the inspiration for the idea for doing this study. The study provides, firstly, a brief background on the group responsible for the sustainability reporting framework widely used by companies, the Global Reporting Initiative (GRI). This is followed with another short background on a second, though newer, group with another framework, the International Integrated Reporting Council (IIRC). The study presents - to the best of the author's knowledge - the first comparative study of corporate sustainability reports (and the frameworks used) across ten Emerging Asian economies. It proceeds to this core empirical contribution of the paper by explaining the process how the corporations in Emerging Asia were selected for inclusion in the study. It notes that the companies and the economies of origin were not picked directly for inclusion. The first step was to find reputable corporate sustainability rankings and ratings. Seven information sources yielded a list of 150 companies from ten Emerging Asian economies. These economies are: China, Hong Kong, India, South Korea, Taiwan, Thailand, Indonesia, Malaysia, Philippines and Singapore. It then presents the findings from a survey of the sustainability reports of the 150 corporations. Across the entire sample, almost 90 percent cite the use of the GRI guidelines. In three economies with more than just a handful of companies in the sample -- South Korea, Taiwan and Thailand -- all of their companies cite the GRI framework. However, the picture is not as one-sided in India, where less than half cite the GRI

Sustainable Consumption and Production (SCP): A Country Case Study of the Philippines

This chapter examines the patterns of consumption and production in the Philippines and analyses their impact on the environment and climate, with a view to finding out whether they are environmentally sustainable or not. It presents the initial findings of the author's research on the topic of sustainable development in the Philippines. It notes the "double dividend" that the Philippines stands to gain from any action to "switch" consumption and production to more sustainable patterns

Trade and Poverty Issues: A Country Case Study of the Philippines

This study begins with an overview of the poverty situation in the Philippines. It then takes a brief look at the poor in the rural areas, followed with a discussion of the poor in the informal sector. It then brings these two sectors together, with an examination of the poor and the urban/rural and formal/informal divides. It concludes with a discussion of the relationship among trade, poverty and the structural transformation of the Philippine economy

The NASA Spitzer Space Telescope

The National Aeronautics and Space Administration's Spitzer Space Telescope (formerly the Space Infrared Telescope Facility) is the fourth and final facility in the Great Observatories Program, joining Hubble Space Telescope (1990), the Compton Gamma-Ray Observatory (1991–2000), and the Chandra X-Ray Observatory (1999). Spitzer, with a sensitivity that is almost three orders of magnitude greater than that of any previous ground-based and space-based infrared observatory, is expected to revolutionize our understanding of the creation of the universe, the formation and evolution of primitive galaxies, the origin of stars and planets, and the chemical evolution of the universe. This review presents a brief overview of the scientific objectives and history of infrared astronomy. We discuss Spitzer's expected role in infrared astronomy for the new millennium. We describe pertinent details of the design, construction, launch, in-orbit checkout, and operations of the observatory and summarize some science highlights from the first two and a half years of Spitzer operations. More information about Spitzer can be found at http://spitzer.caltech.edu/

Brafv600e and Ctbn1 Mutational Study in Rathke's Cleft Cysts

Aim: Rathke's cleft cysts and craniopharyngiomas tipically involve sellar region and their histogenetic relationship is still matter of debate. Clinical and histopathologic differentiation of cystic lesions from the sellar region, that is, craniopharyngiomas (CPs) and Rathke cleft cysts (RCCs), is challenging and has great importance with respect to variable clinical manifestation and adapted surgical treatment strategies in both entities. The recent acquisition that adamantinomatous and papillary craniopharyngiomas bear distinct molecular alterations i.e., β-catenin (CTNNB1) and BRAFv600 mutations respectively, has suggest to screen for such alteration a series of Rathke cyst to seek a possible relation with one of the two craniopharyngioma type. Methods: Seven Rathke's cleft cysts were analyzed for BRAF and CTNNB1 mutational status by sequencing and immunohistochemistry. Radiological, clinical and histological features were performed. Results: None of the 7 Rathke's cleft cysts harbor BRAFV600E mutation. No CTNNB1 mutation was found. Radiological, clinical and histological re-evaluation of the cases confirmed the diagnosis of Rathke's cleft cysts. Conclusion: BRAFV600E and CTNNB1 mutations appeared, as most reliable factor for the differentiation between purely cystic CPs and RCCs, whereas tumor location, tumor size, and radiological parameter of the tumor were less consistent parameters. This study again confirms that craniopharyngiomas (CPs) and Rathke cleft cysts (RCCs), are associated with distinct pathogenic pathways