10.18639/MERJ.2019.956433
Review Article
Oct 08, 2019
Special Issue S4: “Global Trade Wars - A Case of Sino-US Trade War”
United States (US) and China are the two largest economies of the world, where the former is the biggest developed economy and the latter is one of the largest developing economies of the world. This paper implores to assess the cause and effect of the US-Sino Trade War. The attempt is to understand the reasons behind the same and its impact on warring economies and collateral damage to the economies of other countries. The experience establishes that trade wars have no winners. The war started in year 2018; the long-run effects of this trade war are still to be seen yet; till date the impact of this crisis has been substantial for both the US and China.
10.18639/MERJ.2019.874701
Review Article
Oct 02, 2019
Special Issue S4: “Global Trade Wars - A Case of Sino-US Trade War”
This article is written to summarize what has been going on in trade war between the United States and China and to express how this war affects trade relations of Latin America with both of the actors being involved in the trade war. The reason why Latin America is chosen as a region to work on rests on the fact that both the United States and China have been conducting considerable trade relations with the region. This article is organized to analyze what kind of a position Latin America would be at during the upcoming moves from two giants and how the region should revise its ties with both economies considering the past relations it has had with before this trade war emerged. There have been many moves taken by the United States and China after the dispute started to show up; however, Latin America has been conducting considerable relations in terms of trade, politics, historical orientation, and geographical ties with both giants since long before the trade dispute began. Therefore, this article has an aim to recover the historical trade relations of Latin America and to have some clues to determine what can come next for the region’s economic position and trade relations. Colonial past of the region, the role it has played during the Cold War, the involvement of the Latin America in trade relations with China, and Chinese presence in the region are the factors that are included in the article to understand the critical position of Latin America in the Sino–US trade war.
Original Research Article
Sep 30, 2019
Despite financial inclusion being a key driver of growth and income equality, developing countries continue to have significant proportion of populations without access and usage of basic formal financial services. Instead, most still subscribe to informal financial services, which have low or nonexistent entry barriers. In the context of small holder farmers, informal financial services can moderate their access to finance where there are gaps in the formal financial instrumentation. The present study, therefore, sought to determine the moderating effect of informal financial services on the use of formal financial services among small holder farmers in Kenya. The target population for this study were small holder farmers from Nakuru, Busia, and Kirinyaga counties in Kenya; a sample size of 496 was obtained and selected through purposive and stratified random sampling techniques. Data were collected using copies of a researcher-developed questionnaire and analyzed using multiple linear regression analysis with Stata. The findings reveal that informal financial services did not have a moderating effect on utilization of formal financial services among small holder farmers. The study recommends that the formal financial institutions develop products and work closely with informal financial services to encourage more utilization of financial services.
10.18639/MERJ.2019.945413
Review Article
Sep 30, 2019
Special Issue S4: “Global Trade Wars - A Case of Sino-US Trade War”
The paper attempts to provide an overview of the ongoing trade war between the United States and China. The major focus is to discuss the recent developments and discuss a time line of the events. It also looks at some of the other aspects that are linked with the ongoing trade war such as the Foreign Investment Law, the White Paper issues by the Chinese government discussing the trade war, and the Huawei issue.
10.18639/MERJ.2019.954639
Review Article
Sep 27, 2019
Special Issue S4: “Global Trade Wars - A Case of Sino-US Trade War”
The Sino–United States (US) trade war since 2017 has triggered Sino–US confrontations in the economic field and also intensified geopolitical competition. From a historical perspective, the current Sino–US trade war is a continuation of the conservative US trade policy, rather than a dramatic development. From a global perspective, the trade dispute between China and the United States is only part of President Donald Trump’s grand global economic strategy that aims to stabilize the economic hegemony of the United States. Trump’s economic diplomacy targets both China and its Western allies, with the goal of achieving a comprehensive and complete solution. The developmental status of the United States shows that its economic strength is increasingly insufficient to support the status of global hegemony, as well as being increasingly incapable of meeting the global requirements for providing public goods. Therefore, trade wars are essentially trade policy adjustments made by the United States to consolidate its hegemonic foundations and fight against potential opponents, e.g., the trade wars against Germany in the 1960s and Japan in the 1980s. Based on the timeline of the current trade war, Trump was obviously well prepared. Trump’s behavior now clearly violates the basic rules of WTO and his policy does not focus on technology and innovation, which is key to future economic growth. Whether Trump’s well-planned and aggressive economic strategy will work, it will fundamentally change China’s US policy from cooperative to more independent.
10.18639/MERJ.2019.952971
Review Article
Sep 25, 2019
Special Issue S4: “Global Trade Wars - A Case of Sino-US Trade War”
This study reviewed standard international trade theories as they pertain to the impact of trade restrictions. Current empirical studies were reviewed to see whether evidence supports trade theory predictions. Conventional price impacts in standard models of international trade show that trade restrictions are detrimental for trade for both countries involved, and the empirical evidence from current studies confirmed this. The current tit-for-tat tariff escalation between China and the United States has led to, among other things, increased domestic prices to both American consumers and producers; lower export prices to some of the Chinese exporters and American firms based in China; reduced import and export trade between the two countries that would lead to costly adjustments in supply chains; loss in net welfare and employment; and loss in competitive advantage to firms in both countries that produce for export. Therefore, efforts should be made to de-escalate these trade tensions.
Original Research Article
Sep 20, 2019
To investigate the association between return to scale (RTS) and profitability in the United Kingdom banking sector, we adopted logistic regression analysis, using sample sizes of 135, 140, and 121 banks for the years 2016, 2015, and 2014, respectively. Our findings indicate a positive and statistically significant association between profits as measured by return on assets (ROA) and increasing RTS during the three years of the sample period. We also investigated the relationship between bank size as represented by the log of total deposits and RTS. Our findings also indicate that bigger banks show increasing RTS, but with decreasing rate, as represented by the negative coefficient of the square of the log of deposits. To investigate further the link between bank size and operating cost with ROA, we employed panel data regression, covering the sample period (2011-2016) for the largest 25 banks. Our results show that there is a positive and significant association between ROA and the total assets of the largest banks, but the operating expenses impact negatively on the ROA. More specifically, 1% increase in total assets increase ROA by 2, and 1% increase in the operating expenses reduce ROA by 1.7%. These results imply that bigger banks in the United Kingdom’s banking sector are able to gain competitive edge in attracting deposits as they operate along the downward sloping portion of average operating cost curve.
10.18639/MERJ.2019.939744
Review Article
Sep 09, 2019
Special Issue S4: “Global Trade Wars - A Case of Sino-US Trade War”
The article is devoted to one of the urgent problems of the world economy: the trade opposition of the United States and China. Due to the fact that these countries occur to be the largest economies in the world, their conflict cannot in one way or another be reflected in other subjects of international economic relations. The article analyzes the main stages of the trade war between the United States and China and formulates the causes of the crisis. On the basis of a regional approach and analysis of statistical data, it became possible to make an assessment of the effects that the US–PRC rivalry has on mutual trade, investment, and energy cooperation between Russia and China. It is noted that in connection with the trade conflict, Russian–Chinese relations are reaching a new level of development, and the number of joint economic projects is growing. However, the confrontation between the United States and China brings not only opportunities but also risks for Russia. The authors make a forecast about the impact of the trade war on the economy of the Russian Federation in the short and medium term.
10.18639/MERJ.2019.942734
Review Article
Sep 04, 2019
Special Issue S4: “Global Trade Wars - A Case of Sino-US Trade War”
US–China economic ties have expanded substantially since China began reforming its economy and liberalizing its trade regime in the late 1970s. Total US–China merchandise trade rose from $2 billion in 1979 (when China’s economic reforms began) to $636 billion in 2017. China is currently the United States’ largest merchandise trading partner, its third-largest export market, and its biggest source of imports. There are multiple areas of disagreement that preceded the trade war. One ground is that China is buying off American assets. It is also alleged that China violates US patent rights. It is also stated by United States that China has restrictions on US companies entering certain areas in production in China. The scale at which US–China trade patterns are changing and ownership patterns of both countries’ MNCs are changing results in a mystification of trade data due to intra-firm trade imports and exports. This may be a major reason why apparent trade patterns do not clearly serve as a guide for commenting on policy wars. This study examines the patterns in the US–China exports, mutual imports, and current account balances over a nearly 25-year period, to form a view about whether the trade war is justified. The general methodology in this paper has been to use a set of semi-log growth equations that enable comparison of various trade-related variables between the United States and China. The method focuses on the long-term patterns before and after global financial crisis (GFC), in the two countries, with the help of a standard dummy variable model. In conclusion, the US claims seem to be unfounded when studied through the lens of long-term trade patterns between the two countries. China’s export performance is much better. The United States’ dependence on imports from China has fallen drastically. Finally, the current balance of payments (BoP) of the United States continues to remain highly negative; whereas, in spite of the setback due to the GFC, China’s BoP position all along continues to be positive.
Review Article
Aug 30, 2019
The insertion role of Brazil in the international scenario, in particular, the change regarding the foreign direct investment (FDI) in the country, is the main subject of this paper that seeks to demonstrate what occurred in the twenty-first century. The first 15 years of the new century saw an increase in the participation of Brazil in the multipolar scenario with China’s growing approach. After the coup d’etat of 2016, the country changed that trend and began to review its foreign partnerships, positioning itself as a representative of US interests in Latin America and seeking to distance itself from the group of former BRICS (Brazil, Russia, India, China, and South Africa) partners.
10.18639/MERJ.2019.902800
Review Article
Aug 30, 2019
Special Issue S4: “Global Trade Wars - A Case of Sino-US Trade War”
Japan is the country with the most Section 301 investigations initiated by the United States. Meanwhile, the ongoing Section 301 investigation case against China is the most complicated and tough case until now. The different responses of Japan and China will be the core theme of this paper. Originally, Japan, little by little, accepted all the demands of the United States under American pressure in the semiconductor conflict and then began to resist its unreasonable demands; eventually, Japan forced the United States to withdraw its excessive requirement in auto parts conflict. In the case of China, previous Section 301 investigations were resolved by bilateral or multilateral agreements although it was difficult. In this time, the Chinese government has taken a countermeasure against the United States’ bullying, evident from the very beginning. The situation is that China and the United States conducted bilateral negotiations on the stretch. Meanwhile, the United States continued to extend the scope of tariff goods and escalate the tariff rate against China, and the Chinese government immediately published the same amount and tariff rate for imported products from the United States. China and other countries are jointly suffering the sanction from the United States and are trying to restrain the trade hegemony of the United States.
10.18639/MERJ.2019.879180
Review Article
Aug 19, 2019
Special Issue S4: “Global Trade Wars - A Case of Sino-US Trade War”
Trade has been one of the most primary reasons behind economic association. Cross-border trade not only makes the markets cost-efficient but rather also brings up a higher degree of specialization to the respective nations. Bilateral trades have proven to be quintessential to both sides of the deal. However, on a parallel front, every economy has a self-interest toward the domestic produce, and they also try to defend their local manufacturers from cross-border competition. The United States has an “America-first” policy. Whenever the United States imposes tariffs and duties, similar responses have been observed by China. These moves are an area of great concern for global trade. The impact is often visible on the rest of the world. A trade-off exists between domestic economic growth and favored imports. This study is an attempt to discuss the trade relations between the United States and China and how this has led to a trade war. The trade tensions between the United States and China may continue for a few more years. There is a battle for economic supremacy and global leadership. This study explains why the United States is increasing tariffs on Chinese goods and how China is retaliating. This US–China trade war has affected not only the two economies but also the world economy. This study elucidates the repercussions of trade war on the international supply chain and the countries of the European Union. This study has also endeavored to discuss the impact of this trade war on the Indian economy. It is a golden opportunity for India to increase exports to China, the United States, and Europe.
10.18639/MERJ.2019.895478
Review Article
Aug 13, 2019
Special Issue S4: “Global Trade Wars - A Case of Sino-US Trade War”
The US–China trade relationship has expanded immensely after China’s reformation of its economy and liberalization in 1979. A very huge amount of trade takes place between the United States and China in terms of monetary value and quantity. China benefits the United States in several forms other than just trade, such as US firms seeking investment opportunities in China for their assembly units. Subsequently, China holds a huge amount of US treasury securities, and purchases US debt securities, which helps them to keep their interest rates low. However, even after the development of such a trade relationship, the United States has certain concerns relating to China’s intentions. From the United States’ point of view, China is not involved in a fair practice of trade. China has imposed state-directed policies that bend the flow of trade and investment opportunities. Furthermore, the United States has allegations against China pertaining to the issue of intellectual property rights along with mixed records on implementation of WTO obligations, establishment of procedures for impacting the value of its currency and restrictions on FDI. The United States claims that such policies from China’s side make a great impact on the US economy and thus is the concern of the Congress. The current president, Mr. Donald J. Trump, has pledged to promote the free and fair trade policy. So his administration has taken some severe steps to reduce the US bilateral trade deficit. The president first announced the imposition of tariffs on steel and aluminum at 25% and 15%, respectively. To this action of the United States, China retaliated by raising the tariffs on various goods that are imported from the United States. Furthermore, the United States claimed that it would take actions against Chinese intellectual property rights policies that could be a hindrance to the US stakeholders. Later, the United States released a two-stage plan to impose tariffs on Chinese imports that would directly affect Chinese industrial policies for which again there was retaliation by China by releasing their own two-stage plan for American imports that would adversely affect American industries. This paper is an attempt to analyze the effect of the trade war between the United States and China and briefly discusses about the impact of this war on China and the probable measures implemented by the country.
Review Article
May 24, 2019
The aim of this paper is to examine the economic costs of the years of Islamic State of Iraq and Syria (ISIS) invasion to Iraqi governorates by assessing the Iraqi economy before and after the encroachment and to provide an overall view of the challenges and opportunities facing the Iraqi economy after the conflict. It uses a simple descriptive method of data analysis using analytical tools such as percentages, tables, and figures to achieve the objectives of the inquiry. Data for the study were generated from national and international references. The results show that the conflict, along with falling international oil prices, resulted in a weakened financial system, lower levels of gross domestic product, and higher poverty. A substantial increase in the unemployment rate, debilitated education, and large damages to infrastructure were also experienced. The study is one of the first studies to clarify and calculate the losses of the Iraqi economy in all its aspects because of the occupation of ISIS.
Case Study
May 21, 2019
This case study examines Beats by Dr. Dre on how to infuse the entrepreneurial spirit in today’s college students, given the backdrop of hip-hop culture. In more than 10 years, the legendary music record producer Jimmy Iovine and hip-hop icon Dr. Dre has turned a small subculture success into a multibillion-dollar business. With that growth of Beats by Dre, there are opportunities for universities to learn from this company. Through the lens of hip-hop, readers can observe the characteristics of effective entrepreneurship, which is essential for success in the business world. The result of this investigation is significant because the results can better assist scholars and practitioners on how to inject the entrepreneurial mind-set in young business professionals.
