Measuring the impact of globalization : an analysis of the risk and return of multinational firms

Version of RecordThere have been several debates in the literature over the issue of multinational firms and their impact on profitability and risk. Previous literature suggests that multinational firms decrease their systematic risk owing to the diversification benefit of having cash flows in different countries. More recent empirical evidence has surfaced suggesting the contrary in that multinationals may increase their risk due to an increase in the standard deviation of cash flows from such additional risk factors as political risk, exchange rate risk, and information asymmetry. In conjunction with lower risk, it has been posited that firms have higher leverage. Empirical studies on profitability have shown similar rates of return for both domestic and international firms. Through the use of pooled regression analysis this paper finds support for the hypothesis that multinational firms experience lower debt, and lower profitability.Broaden, C. & Samii, M. (2001). Measuring the impact of globalization: An analysis of the risk and return of multinational firms. Retrieved from http://academicarchive.snhu.ed

Trade balances, economic growth and linkages to multinational foreign direct investment to Asia

Version of RecordThis research has investigated whether trade balance is an indicator of foreign direct investments by a multinational corporation. It addresses two principal research questions. First, what are the determinants of foreign direct investment (FDI) in Asia? Second, is trade balance an indicator of FDI? If so, is there any lag effect on FDI for a specific Asian country? Based on annualized time series data for 8 sampled countries in Asia, the results indicate for majority of sampled Asian countries significant statistical correlation exists between the four explanatory variables (GDP growth rate, trade balance, percentage change in real wages, and the average tax rate) and the monetary size of FDI. For majority of sampled Asian countries the coefficient of trade balance is statistically significant, and for only 2 sampled Asian countries, the study indicate significant statistical correlation exists between one period lag monetary size of FDI and the current period FDI. Based on the empirical findings, an MNC, by investing (FDI) in either exportable or import substitutable products of countries that are facing trade balance problems, will be in a stronger position to negotiate better incentives from the host country which in turn will enhance the MNCs value. This research has also shown that an MNC, which is looking for a location of its FDI, will be better off by investing in the sampled Asian countries that are facing trade balance problems and simultaneously are the recipient of FDI.Hassan, M. & Samii, M. (2001). Trade balances, economic growth and linkages to multinational foreign direct investment to Asia. Presented at Academy of International Business - Northeast Region 2000 Annual Meeting, Ithaca, New York. Retrieved from http://academicarchive.snhu.ed

Energy policy and oil prices : system dynamics approach to modeling oil market

Version of RecordA version of this paper was presented in the 2nd Annual International Conference on Global Commerce, Las Vegas, NV during October 22-24, 2009.The pattern of global oil demand, real oil price, and world economy in the future is studied through system dynamics modeling. Based on the simulation, the oil demand will drop and then gradually recover while the real oil price will be stable and then drop mimicking a sigmoid curve. The economy will continuously increase. If an economic stimulus policy is implemented, the oil demand is expected to have a shallower drop. Thus, the real oil price is likely to be an S-shaped curve with a higher value, and the economy is expected to grow faster as compared to the case when there is no stimulus policy.Samii, M., & Teekasap, P. (2010). Energy policy and oil prices: System dynamics approach to modeling oil market. Journal of Global Commerce Research 2(3): 1-7

System dynamics approach to the analysis of interaction of foreign direct investment and employment in Thailand

Author's OriginalThis paper was also presented at the Academy of International Business Northeast Annual Conference October 1-4, 2009, in New York City.This research studies the effect of FDI policy on the wages and employment in Thailand. A system dynamics model that simulates the interaction between labor market and foreign direct investment in Thailand is used. The results show that having an FDI policy results in higher FDI in the short term but lower FDI in the long term. The effect of the policy on unemployment in the short term is not significant but the unemployment ratio is higher than it would be without such policy in the long term. Regarding the salary, having an FDI policy results in having higher average salary in both the short-term and the long term.Samii, M., & Teekasap, P. (2010). System dynamics approach to the analysis of interaction of foreign direct investment and employment in Thailand. Academy of Taiwan Business Management Review, (6)1

Enterprise social networks : application to oil industry

We believe that Enterprise Social Networks (ESNs) will help improve communication among stakeholders within the created "virtual" communities and improve overall operational efficiency of the industry. Such a model requires the creation of "network externalities" through a large number of participants in the network. It is postulated, that the larger the membership in the community the greater the advantages of membership. The paper demonstrates how ESN would work for the oil industry and explains how various members could benefit from their participation in the network. The value chain of the oil industry and its various participants as well as the interaction and business value creation for each enterprise group are discussed.Samii, M., Manus, A., & Frutos, D. (2009). Enterprise Social Networks: Applications to Oil Industry. Journal of Global Commerce Research, (1)1, 34-48

Euro pricing of crude oil : an OPEC's perspective

This paper was also presented in the 24th annual meeting of MEEA in conjunction with Allied Social Sciences Association in San Diego, U.S.A., January 3-5, 2004Version of RecordIn the late 1970s and the early part of the 1980s, a debate emerged within the Long Term Strategy Committee of the Organization of Petroleum Exporting Countries (OPEC) whether to continue the pricing of crude oil in United States dollars or to shift to an alternative currency. This debate was rooted in the persistent decline in the value of the United States dollar relative to other global currencies. The choice of currencies available to price crude oil was limited for OPEC because of the inadequate liquidity of most other currencies. With the recent emergence of the euro, the issue of choice of currency for pricing crude oil has emerged once again for policy discussion. The current paper is focused on the implications of a shift in the pricing of crude oil from United States dollar to euro on OPEC members. Winners and losers are identified based on economic gains and losses. It is concluded that while such a policy would incrementally benefit OPEC en bloc, it would result in a disadvantage for the countries whose major trading partner is the United States and, therefore, would not be a Pareto optimal solution.Rajamanickam, M., Samii, M., & Thirunavukkarasu, A. (2004, September). Euro pricing of crude oil: An OPEC's perspective. Topics in Middle Eastern and North African Economies, 6. Retrieved from http://academicarchive.snhu.ed

Global shock transmission to emerging markets

Author's OriginalThe process of global integration has intensified the competition in world markets during the 1990s. In the new environment, many developing countries are increasingly relying upon greater trade integration for upgrading their international competitiveness and promoting their dynamic comparative advantage. In view of growing global integration, this paper attempts to analyze whether Indian, Hungarian and Polish economies have become more internationalized as a result of economic reforms embraced by each of these countries in early 1990s and hence vulnerable to global economic cycles: the integration hypothesis. The paper applies variance decompositions derived from vector auto regression to assess the degree of economic integration of the three economies with U.S. economy. The study concludes that, in the pre-liberalization period U.S. economy did not influence the Indian, Hungarian and Polish economies. Shocks from U.S. had no impact on their aggregates. In the post liberalization period, however, the results are mixed. Hungarian aggregates show very low degree of integration with US followed by Poland, and India. Although, all the three countries have shown varying degrees of integration in the post-liberalization period, none of the economies are found to be overly vulnerable to international shocks. It can be argued that despite opening of economy and transition towards integration with the global economy, the degree of integration across countries still remains significantly low.Dasari, U., Dhakar, T. S., & Samii, M. (2003, July). Global shock transmission to emerging markets. Paper presented at the Academy of International Business Annual Meeting, Monterey, California. Retrieved from http://academicarchive.snhu.ed

A cultural analysis of management styles : the United States with a new generation of managers in India and China

Author's OriginalIn this study, the outcome of our research represented an interesting difference with both Hofstede’s and GLOBE’s results. Our focus is on well educated, highly trained managers from the US, India and China. The participants were upwardly mobile, some MBA educated, many trained in the Western style of management - essentially a new generation of managers. Questionnaires were given to managers working in multinationals in each of these countries and/or individuals with advanced education. This study extends the findings of Hofstede, the GLOBE and Level 5 Leadership by focusing on the management styles of the modern sector of emerging economies. The research suggests that there are significant and rapid changes on how to manage and how to compete in the new global economy.Samii, M., Schragle-Law, S., & Yang, C. (2008). A cultural analysis of management styles: The United States with a new generation of managers in India and China. Journal of Current Research in Global Business, 2(16)

Leadership style of Indian managers: a comparative analysis

Version of RecordThis study focuses on the comparative analysis of Indian and American style of management in the context of Hofstede’s framework, the GLOBE Project, Level 5 Leadership, and a creativity dimension. Geert Hofstede pioneered a study of cross cultural management using data from IBM employees; his research has set a new paradigm and a model for cross cultural research. In our study, we test Hofstede’s attributes with the new data that we have collected from Indian business people.Schragle-Law, S., Samii, M., & Sharma, N. (2007, October). Leadership style of Indian managers: a comparative analysis. Presented at the Academy of International Business U.S. Northeast Chapter Regional Meeting, Portsmouth, New Hampshire. Retrieved from http://academicarchive.snhu.ed