• Title/Summary/Keyword: Trade Frictions

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Analysis on the Causes and Countermeasures of Sino-US Trade Friction

  • Tan, Dan;Shuai, Xiaoyu
    • Asia-Pacific Journal of Business
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    • v.7 no.2
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    • pp.49-59
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    • 2016
  • The study attempts to investigate the causes of Sino-U.S. trade friction in recent years and provides countermeasures accordingly. The import and export volume of two countries, the product structure of China's export, the 337th Act lawsuits related to China, the industries involved in trade friction, and the G-L Index of Sino-U.S. Products are analyzed in detail. The causes of Sino-US trade frictions are discussed from the aspect of mercantilism and trade protectionism, interest groups and governments' trade policies, Chinese product structure, intellectual property protection in China, and performance of Chinese enterprises in litigation. Based on these, countermeasures are put forward. China needs to implement industrial upgrading, increasing the added value of products, and improving intellectual property protection. A trade friction warning system also needs to be constructed. The Chinese government needs to carry out strategic dialogue and international negotiation.

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A Quantitative Trade Model with Unemployment

  • Lee, Kyu Yub
    • East Asian Economic Review
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    • v.23 no.1
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    • pp.27-53
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    • 2019
  • I employ search-and-matching to a multi-country and multi-sector Ricardian model with input-output linkages, trade in intermediate goods, and sectoral heterogeneity, in order to quantify the welfare effects from tariff changes. The paper shows that labor market frictions can be a source of comparative advantage in the sense that better labor market conditions contribute to lower cost in production. Labor market frictions play a critical role in determining the probability of exporting goods to trading partners, and interact with bilateral trade share, price, expenditures, etc. Unemployment and changes in unemployment rates due to tariff reductions contribute welfare changes across countries, implying that welfare effects based on quantitative trade models with full-employment are likely to be biased. I confirm the biased welfare effects by revisiting Caliendo and Parro (2015), who conduct an analysis of the welfare effects from the NAFTA from 1993 to 2005. I show that the welfare gap between theirs and mine has a positive correlation with changes in observed unemployment rates across countries. With the constructed model, I further conduct counterfactual exercises by asking what would happen if China's tariffs remain unchanged from 2006 to 2015. It turns out that there are mild welfare effects to trading partners in the world trading system.

The Influence Factors of China's Cross-border E-commerce Export Trade Using Gravity Model

  • Jing Han;Taehee Lee
    • Journal of Korea Trade
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    • v.26 no.5
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    • pp.56-75
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    • 2022
  • Purpose - This study examines the influencing factors of China's cross-border e-commerce exports in the context of the current situation and trends of China's cross-border e-commerce development. Through an improved trade gravity model, it provides more in-depth research and constructive opinions on the development of cross-border e-commerce in China. In this paper, factors such as consumption gap, volume of trade frictions, number of tourists, Internet usage and trade openness are added to the formula of the traditional trade gravity model in the improved trade gravity model to examine the influencing factors on China's cross-border e-commerce exports. Design/methodology - According to the empirical analysis, China's cross-border e-commerce exports to ten countries are used as dependent variables, and consumption gap, trade friction volume, trade distance, trade openness and number of Internet users are taken as independent variables. Regression analysis is conducted through a modified gravity model to test whether the hypotheses hold. Findings - The analysis shows that the hypothesis that China's cross-border e-commerce exports are influenced by trade openness, trade distance, consumption gap between trade parties, and the number of Internet users in the importing country is supported by these four hypotheses, but not all independent variables have an impact on them. Specifically, the number of travelers, trade frictions do not have an impact on China's cross-border e-commerce. That is to say, trade friction between China and the United States and political issues such as China-India and China-Japan territorial disputes that emerged before do not affect the development of cross-border e-commerce in China. Originality/value - The analysis shows that the factors influencing China's cross-border e-commerce exports are the trade openness of the importing country, the trade distance, the number of Internet users in the importing country, and the consumption gap between the two sides of the trade. The trade openness and the number of Internet users positively contribute to China's cross-border e-commerce, while the consumption gap and trade distance are negatively related to them. And the analysis found that the Sino-US trade war and the Sino-Indian territorial disputes and other trade frictions to China's cross-border e-commerce exports did not have a substantial impact.

'Behind-the-Border' Regulatory Policies and Trade Agreements

  • Hoekman, Bernard
    • East Asian Economic Review
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    • v.22 no.3
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    • pp.243-273
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    • 2018
  • A consequence of global trade liberalization is that domestic regulatory policies have become a focal point for efforts to reduce the costs of engaging in cross-border production and exchange. This article discusses the general challenges of reducing trade frictions created by regulatory differences, focusing specifically on the role trade agreements might play in addressing regulatory spillovers. A case is made for a greater focus on plurilateral cooperation under the umbrella of the WTO.

The Short-Term Fear Effects for Taiwan's Equity Market from Bad News Concerning Sino-U.S. Trade Friction

  • YANG, Shu Ya;LIN, Hsiu Hsu;LIU, Ying Sing
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.3
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    • pp.127-137
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    • 2021
  • Mainland China area has been a long-term, major trade rival and partner of Taiwan, accounting for more than 40% of Taiwan's total annual trade exports, and so Sino-US trade friction is expected to have a significant impact on Taiwan's economy in the future. This study focuses on major bad news of Sino-US trade frictions and how it generates short-term shocks for Taiwan's equity market and fear sentiment. It further explores the mutual interpretation relationship between price changes such as VIX, Taiwan's stock market index, and the VIX ETF to identify which factors have information leadership as leading indicators. The study period covers 750 trading days from 2017/1/3 to 2020/1/31. This study finds that, when a policy news is announced, the stock market index falls significantly, the change in the trading price (net value) of the VIX ETF rises significantly, and the overprice rate significantly drops, but VIX does not, showing that fear sentiment exists in the Taiwan's market. The net value of the VIX ETF shows an information advantage as a leading indicator. This study suggests that, when the world's two largest economies clash over trade, the impact on Taiwan's equity market is inevitable, and that short-term fear effects will arise.

Control of Vehicle Yaw Moment using Sliding Mode with Time-Varying Switching Surface (시변절환면을 갖는 슬라이딩 모드에 의한 차량의 요-모멘트 제어)

  • Lee, Chang-Ro;Yang, Hyun-Seok;Park, Young-Pil
    • Transactions of the Korean Society of Mechanical Engineers A
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    • v.27 no.5
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    • pp.666-672
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    • 2003
  • This paper presents a design of the controller for vehicle lateral dynamics using active yaw moment. Vehicle lateral motion is incorporated with directional controllability and stability. These are conflicting each other from the view of vehicle handling performance. To compromise the trade-off between these two aspects, we suggest a new control algorithm based on the sliding mode with time-varying switching surface according to the body side slip angle. The controller can deal with the nonlinear region in vehicle driving condition and be robust to the parameter uncertainties in the plant model. Control performance is evaluated from the simulation for the vehicle of real parameters on the road with various tire-road frictions.

A Study on the Alternative Establishment of Global Terminal Operator(GTO) and Improvement of Legal System (글로벌 터미널 운영사(GTO) 설립의 대안설정 및 관련 법 제도의 개선방안에 관한 연구)

  • Sim, ki-sup
    • Journal of Korea Port Economic Association
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    • v.36 no.1
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    • pp.1-22
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    • 2020
  • The global container terminal market is predicted to see continued future volume growth. According to Drewry, global container shipments rose by 6.3% year-on-year to 750 billion twenty-foot equivalent units (TEUs) in 2017 and are forecast to experience continued growth to 9.3 billion TEUs in 2022. According to IHS Markit, the global terminal operator (GTO) market is forecast to grow more than 10% annually, up from $2.4 billion in 2017, to exceed $3 billion by 2022. However, Hyundai Merchant Marine is the only real GTO in Korea. In particular, the shipping and port markets are facing drastic changes, both at home and abroad, including a slowdown in the growth of domestic export and import shipments, environmental changes in the container market caused by the trade frictions between the US and China, and increased changes in container shipments caused by the trade frictions between Korea and Japan. In this study, we propose ways for domestic companies to participate in the continuously growing GTO market. After analyzing the current status of the global GTO market, the government expressed a desire to explore ways to establish GTOs through the Port Authority and the Korea Ocean Business Corporation. Therefore, four types of establishment plans were proposed, along with a legal framework for the establishment of GTOs.

A study on The U.S.-Korean Trade Friction Prevention and Settlement in the Fields of Information and Telecommunication Industries (한미간(韓美間) 정보통신분야(情報通信分野) 통상마찰예방(通商摩擦豫防)과 해소방안(解消方案)에 관한 연구(硏究))

  • Jung, Jay-Young
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.13
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    • pp.869-895
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    • 2000
  • The US supports the Information and Communication (IC) industry as a strategic one to wield a complete power over the World Market. However, several other countries are also eager to have the support for the IC industry because the industry produces a high added value and has a significant effect on other industries. Korea is not an exception. Korea recently succeeded in the commercialization of CDMA for the first time in the world, after the successful development of TDX. Hence, it is highly likely to get tracked by the US. Although the IC industry is a specific sector of IT, there is a concern that there might be a trade friction between the US and Korea due to a possible competition. It will be very important to prepare a solution in advance so that Korea could prevent the friction and at the same time increase its share domestically and globally. It will be our important task to solve the problem with the minimum cost if the conflict arises unfortunately in the IT area. The parties that have a strong influence on the US trade policy are the think tank group and the IT-related interest group. Therefore, it would be important to have a close relationship with them. We found some implications by analyzing the case of Japan, which has experienced trade frictions with the US over the long period of time in the high tech industry. In order to get rid of those conflicts with the US, the Japanese did the following things : (1) The Japanese government developed supporting theories and also resorted to international support so that the world could support the Japanese theories. (2) Through continual dialogue with the US business people, the Japanese business people sought after solutions to share profits among the Japanese and the US both in the domestic and in the worldwide markets. They focused on lobbying activities to influence the US public opinion to support the Japanese. The specific implementation plan was first to open culture lobby toward opinion leaders who were leaders about the US opinion. The institution, Japan Society, were formed to deliver a high quality lobbying activities. The second plan is economic lobby. They have established Japanese Economic Institute at Washington. They provide information about Japan regularly or irregularly to the US government, research institution, universities, etc., that are interested in Japan. The main objective behind these activities though is to advertise the validity of Japanese policy. Japanese top executives, practical interest groups on international trade, are trying to justify their position by direct contact with the US policy makers. The third one is political lobby. Japan is very careful about this political lobby. It is doing its best not to give impression that Japan is trying to shape the US policy making. It is collecting a vast amount of information to make a correct judgment on situation. It is not tilted toward one political party or the other, and is rather developing a long-term network of people who understand and support the Japanese policy. The following implications were drawn from the experience of Japan. First, the Korean government should develop a long-term plan and execute it to improve the Korean image perceived by American people. Second, the Korean government should begin public relation activities toward the US elite group. It is inevitable to make an effort to advertise Korea to this elite group because this group leads public opinion in the USA. Third, the Korean government needs the development of a relevant policy to elevate the positive atmosphere for advertising toward the US. For example, we need information about to whom and how to about lobbying activities, personnel network who immediately respond to wrong articles about Korea in the US press, and lastly the most recent data bank of Korean support group inside the USA. Fourth, the Korean government should create an atmosphere to facilitate the advertising toward the US. Examples include provision of incentives in tax on the expenses for the advertising toward the US and provision of rewards to those who significantly contribute to the advertising activities. Fifth, the Korean government should perform the role of a bridge between Korean and the US business people. Sixth, the government should promptly analyze the policy of IT industry, a strategic area, and timely distribute information to industries in Korea. Since the Korean government is the only institution that has formal contact with the US government, it is highly likely to provide information of a high quality. The followings are some implications for business institutions. First, Korean business organization should carefully analyze and observe the business policy and managerial conditions of US companies. It is very important to do so because all the trade frictions arise at the business level. Second, it is also very important that the top management of Korean firms contact the opinion leaders of the US. Third, it is critically needed that Korean business people sent to the USA do their part for PR activities. Fourth, it is very important to advertise to American employees in Korean companies. If we cannot convince our American employees, it would be a lot harder to convince regular American. Therefore, it is very important to make the American employees the support group for Korean ways. Fifth, it should try to get much information as early as possible about the US firms policy in the IT area. It should give an enormous effort on early collection of information because by doing so it has more time to respond. Sixth, it should research on the PR cases of foreign enterprise or non-American companies inside the USA. The research needs to identify the success factors and the failure factors. Finally, the business firm will get more valuable information if it analyzes and responds to, according to each medium.

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