REGIONAL ECONOMIC INTEGRATION: THE CANADA-U.S. EXPERIENCE

This paper assesses the nature and degree of bilateral economic integration preceding and following the implementation of the Canada- U.S. Free Trade Agreement (CUSTA). Various price-based and quantity- based indicators of economic integration are assessed. Results vary depending upon the indicator; however, on balance, the results provide only modest evidence of incremental integration in the post-CUSTA period. The findings serve as a caution against managers and policymakers assuming that regional integration is an inevitable dynamic and basing strategies and policies around this assumption.economic integration; free trade agreements; trade, foreign direct investment; price convergence.

REGIONAL ECONOMIC INTEGRATION: THE CANADA-U.S. EXPERIENCE

This paper assesses the nature and degree of bilateral economic integration preceding and following the implementation of the Canada- U.S. Free Trade Agreement (CUSTA). Various price-based and quantity- based indicators of economic integration are assessed. Results vary depending upon the indicator; however, on balance, the results provide only modest evidence of incremental integration in the post-CUSTA period. The findings serve as a caution against managers and policymakers assuming that regional integration is an inevitable dynamic and basing strategies and policies around this assumption.economic integration; free trade agreements; trade, foreign direct investment; price convergence

E-BUSINESS AND GLOBAL SOURCING – INFERENCES FROM SECURITIES EXCHANGES

This paper sets out a conceptual model that describes how the configuration of relevant geographic markets might change as electronic “gateways” or portals challenge conventional markets. It then considers the main conceptual inferences against the experience of securities markets. Consideration of empirical evidence suggests that e-business will lead to expanded geographic markets, although the pace and extent of the expansion might be slower and less dramatic, even in the long- run, than early enthusiasts of e-business may have anticipated.geographic markets, securities markets, e-business

Governance Infrastructure and U.S. Foreign Direct Investment

This paper examines the statistical importance of governance infrastructure as a determinant of U.S. foreign direct investment. In broad terms, governance infrastructure represents attributes of legislation, regulation, and legal systems that condition freedom of transacting, security of property rights and transparency of government and legal processes. Our econometric analysis employs a two-stage estimation procedure. In the first stage, the probability that a country is an FDI recipient is estimated. The results indicate that countries that fail to achieve a minimum threshold of effective governance are unlikely to receive any U.S. FDI. Countries that receive no U.S. FDI are typically countries that do not promote free and transparent markets, have ineffective governments, and are often countries whose legal systems are not rooted in English Common Law. In the second stage, the analysis is restricted to those countries that did receive FDI flows. The estimated equations focus on the determinants of the amount of FDI received. Given that a country is a recipient of U.S. FDI, governance infrastructure, including the nature of the legal system, is an important determinant of the amount received.foreign direct investment, capital flows, multinational corporations, infrastructure, governance

THE OUTSOURCING DECISION: A STRATEGIC FRAMEWORK

Outsourcing grew rapidly during the 1990s and has now become an accepted dimension of corporate strategy. While outsourcing continues to grow in importance, the nature and focus of outsourcing is evolving. Historically, most outsourcing took place in manufacturing industries, but it is now spreading rapidly within service industries. Whether in manufacturing or services, outsourcing is becoming increasingly cross- national and global. The growth of international outsourcing has accentuated controversy surrounding trade liberalization efforts in developed economies, especially in the United States.outsourcing, trade liberalization, international trade

HARMONIZATION OF VOLUNTARY DISCLOSURE PRACTICES BY JAPANESE COMPANIES

The costs and benefits of harmonization of international accounting and disclosure practices by firms is an important policy issue. This paper investigates the extent to which voluntary disclosure practices by Japanese firms have converged since the collapse of Japan’s financial ‘bubble’ of the late 1980’s. Convergence of voluntary disclosure would suggest that Japanese firms respond to environmental and market pressures by adopting increasingly similar reporting practices. Our findings suggest that, for our sample of Japanese firms, there was neither more, nor less, convergence in selected voluntary disclosure practices over the sample period, although the average level of disclosure did increase. The results suggest that Japanese firms were in “equilibrium” in terms of the scope of information they voluntarily disclosed, although they perceived net benefits in increasing the quantity of disclosed information.international accounting, disclosure practices, transparency

The Impacts of 9/11 on Canada - U.S. Trade

The 9/11 terrorist attacks in New York and Washington have had profound global economic and political effects. One consequence of the tragedy is heightened security concerns surrounding the movement of goods and people across international borders that, in turn, have raised the prospects of substantial disruptions of international trade. Within the Canada-U.S. context, numerous observers have identified increased regulations and intensified inspection procedures at the Canada-U.S. border as contributing to significantly higher shipping costs and shipment delays. The higher costs and associated disruptions to commercial shipments might be inferred to discourage growth of trade between the two countries. It is now widely accepted that economic integration between the Canadian and U.S. economies is, on balance, an important contributor to the economic health of both economies, especially Canada’s. Developments that might attenuate the growth and “deepening” of North American economic integration therefore threaten the economic welfare of Canadians and Americans, and their nature and magnitude are worthy of careful analysis

An Assessment of Future Bilateral Trade Flows and their Implications for U.S. Border Infrastructure Investment

There are frequent calls for investment in border infrastructure given security-related delays and transportation bottlenecks associated with physical infrastructure described as outdated and inadequate. Given the potentially large investment expenditures needed to expand inspection and transportation infrastructure at border crossing sites, as well as the irreversibility of many of the investments that might need to be made, it is important that government decision-makers base spending choices on highly-informed forward-looking projections of capacity demands on traffic corridors through which bilateral commercial shipments are likely to travel

Geographic and Temporal Variations in Freight Costs for U.S. Imports from Canada: Measurement and Analysis

In recent years, private sector managers in both Canada and the United States have expressed concerns about a “thickening” of the Canada-U.S. border with resulting adverse consequences for continued integration of the North American economy and, more specifically, for Canada-U.S. trade. Several factors have been identified as particularly relevant contributors to higher costs associated with bilateral trade. They include more frequent and closer inspection of goods crossing the border owing to stricter health and safety regulations and heightened security against acts of terrorism. The added delays and uncertainties imposed upon commercial shipments, particularly from Canada to the U.S., arguably add to the costs of shipping goods across the border, thereby discouraging trade at the margin

The Nature of Aggregate and Regional Canada-US Trade (1990-2011)

The impact of post-9/11 border security developments on Canada-U.S. trade has been the focus of much attention in recent years. The available evidence suggests that both U.S. exports and imports with Canada grew more slowly after 9/11 than would otherwise have been the case