Assessing Euro-Med trade preferences: the case of entry price reduction

The EU protects some of its fruits and vegetables through the entry price system. This system consists on a two-tiered tariff, with high-priced exports paying an ad valorem tariff, whereas low-priced exports pay also a supplementary specific tariff. The breaking point between high and low export prices is the entry price level decided by the EU, generally the same level for all third countries. In a few cases, some Southern Mediterranean partners of the EU have agreed a reduced entry price for their exports, together with the more common ad valorem tariff reduction. Among the indicators used for gauge the value of preferences, there is no one devoted to this case of reduced entry price, hence we develop a new indicator that allows to split which part of the preferential gains corresponds to the entry price reduction and which part corresponds to the “usual” ad valorem tariff reduction. We apply this methodology to Moroccan clementines trade flows, with two main findings: 1) The entry price reduction ranges up to 39% of the economic value of preferences in some months; 2) Morocco is not maximizing the gains due to this reduction, and could take some trade and policy lessons, mainly trying to better fit to the concession or, if impossible, use it as negotiating capital in future reviews of the agreement.Euro-Mediterranean Trade; trade preferences; fruits and vegetables; entry price regime

Current preferences of Southern Mediterranean Countries and their erosion after variations of the entry price system

It has been calculated the value of the preference margin granted to Euro-Mediterranean partners in the cases of reduced entry prices in force, and then it has been simulated the impact of EU trade liberalisation for F&V on such values after two different alternatives of EP system variations resulting from a WTO agreement. The results of current preferences indicate that in monetary terms there is only a significant relevance of the preferential EPs in the case of Moroccan tomatoes and, to a lesser extent, in Moroccan clementines. Very little is the relevance for Jordanian tomatoes and cucumbers and Moroccan courgettes, cucumbers and artichokes. In the cases of oranges from Egypt, Morocco, Israel and Jordan, preferential EP has not meant potential monetary transfers to these preference-receiver countries. Instead, the ad valorem tariff exoneration seems crucial in almost all the products. With regard to the erosion of preferences as a result of a WTO agreement, the magnitude of the erosion depends crucially on the variation/no-variation of the current trigger EPs, and the undermining of preferences is concentrated mostly on Moroccan tomatoes.Entry prices, erosion of trade preferences, Euro-Mediterranean trade, fruits and vegetables, International Relations/Trade,

Current-driven skyrmion motion along disordered magnetic tracks

The motion of skyrmions along ferromagnetic strips driven by current pulses is theoretically analyzed by means of micromagnetic simulations. Analytical expressions describing the skyrmion dynamics during and after the current pulse are obtained from an extended rigid skyrmion model, and its predictions are compared with full micromagnetic simulations for perfect samples with a remarkable agreement. The dynamics along realistic samples with random disorder is also studied by both models. Our analysis describes the relevant ingredients behind the current-driven skyrmion dynamics, and it is expected to be useful to understand recent and future experimental.Comment: Micromagnetic simulations and analytical expressions describing the dynamics of skyrmions under current-pulses along realistic strip

Pricing in a duopoly with a lead time advantage

We analyze the price competition between two suppliers offering two different lead times and two different prices to a buyer. The buyer chooses its inventory replenishment policy in order to minimize its infinite-horizon average cost. In essence, the fast and expensive supplier is used only in emergencies, while the slow and cheap supplier receives the bulk of the orders. Thus, despite a higher price, the fast supplier is able to capture a part of the buyer's orders. We analyze the price competition between the asymmetric suppliers, where the market share of each supplier is derived from the buyer's inventory problem. We find equilibria that differ significantly from the Bertrand price-only competition. In particular, for some cost parameters, the fast supplier is able to charge a premium for faster delivery, and stay in business even with a higher production cost. We obtain in some cases closed-form formulas for the price difference in equilibrium. Hence, our results show that high cost suppliers may not be driven out of business if they can offer fast delivery.offshoring; dual sourcing;

Assessing Euro-Med Trade Preferences: The Case of Entry Price Reduction

The EU protects some of its fruits and vegetables through the entry price system. This system consists on a two-tiered tariff, with high-priced exports paying an ad valorem tariff, whereas low-priced exports pay also a supplementary specific tariff. The breaking point between high and low export prices is the entry price level decided by the EU, generally the same level for all third countries. In a few cases, some Southern Mediterranean partners of the EU have agreed a reduced entry price for their exports, together with the more common ad valorem tariff reduction. Among the indicators used for gauge the value of preferences, there is no one devoted to this case of reduced entry price, hence we develop a new indicator that allows to split which part of the preferential gains corresponds to the entry price reduction and which part corresponds to the "usual" ad valorem tariff reduction. We apply this methodology to Moroccan clementines trade flows, with two main findings: 1) The entry price reduction ranges up to 39% of the economic value of preferences in some months; 2) Morocco is not maximizing the gains due to this reduction, and could take some trade and policy lessons, mainly trying to better fit to the concession or, if impossible, use it as negotiating capital in future reviews of the agreement.International Relations/Trade,

Sustainable car life cycle design, taking inspiration from natural systems and thermodynamics

This paper exposes the search for a tool and method, which from a systems approach, adopts the rules and logic that govern our physical context (biosphere) in order to provide guidelines that the car industry could use to achieve an ideal state for ecological, economical and social sustainability

Myopic inventory policies using individual customer arrival information

We investigate optimality of myopic policies using the single-unit decomposition approach in inventory management. We derive, under certain conditions, closed-form replenishment decisions, which we call a base-probability policy. That is, the order associated with a given customer is placed if and only if its arrival probability within the lead-time is higher than a threshold.inventory management; base-stock policies; myopic policies;

Competing for shelf space

This paper studies competition for shelf space in a multi-supplier retail point. We consider a retailer that seeks to allocate her shelf space to maximize her profit. Because products associated with larger profit margin are granted more shelf space, suppliers can offer the retailer financial incentives to obtain larger space allocations. We analyze the competitive dynamics arising from the scarcity of space, and show existence and uniqueness of equilibrium. We then demonstrate that the inefficiencies from decentralizing decision-making are limited to 6% with wholesale-price contracts, and that full coordination can be achieved with pay-to-stay fee contracts. We finally investigate how competition is distorted under the practice of category management.Game theory; Supply chain competition; Price of Anarchy; Pricing; Supply contracts;

Integrating Thermodynamics and Biology for Sustainable Product Lifecycle Design

The linkage between raw resources consumption and economic growth through product manufacture and disposal is creating an untenable pressure on the planet’s natural systems; therefore understanding and embracing the mechanics of the biology and physics of our context could lead to novel approaches in the design of human-built systems/products. Designers are, by active association, responsible for that pressure and much of the impact can be traced back to the early stages of the design process. For designers and engineers the main constraint is accessibility to knowledge of multiple and complex factors in easily digestible form when starting a project. Added to this is the possibility to transcend the realm of products and explore creative solutions throughout the entire life cycle, giving designers the opportunity to propose entire new business models and systems. This paper exposes the search for an intuitive soft modeling tool that considers some of these factors and inspires the innovation of business and systems innovation from a biophysical perspective. The aim of this tool is to enable the exploration of these factors in a playful intuitive way and relate these outcomes to the design of a business model operating within the principles of trophic levels. The first key question to the development of this approach has been: how does it work in nature? Organisms search for their food in other organisms and at the same time are the food of others; biomass and energy are transferred from one level to another, losses occur, higher qualities of energy are created and all is maintained in continuous cycles. The linear human production of goods can be rethought by taking into account this basic principle of thermodynamics and although this is not a technological problem, the relevant constrains need to be integrated for this approach to be feasible. These are from an economics origin: how to achieve a healthy business from a non-linear process? It is proposed that an analogy between natural and human systems: autotrophs = manufacturing, heterotrophs = distributors and consumers, their concentration and size, their possible combinations and their eventual business interpretations, is referred to as Trophic Economics. The envisioned tool will combine the exploration of the complex factors involved in the lifecycle of a product with the suggested Trophic Economics models. The outcome could be sketches of the possible boundaries and structures of new business and products, to be resolved later on the drawing board. In order to measure and keep track of the most relevant decisions, a designer must embrace tools like emergy accounting, MIPS and MI (Wuppertal Institute, 2002) used in related combination, plus indexes of CO2 emissions and relevant economic, social-demographic and ecosystems information about the countries involved in any give proposition of manufacture and use