Diagonal cumulation of origin as the EU’s institutional incentive mechanism for promoting international trade and business
In this paper we explore the effects of a diagonal cumulation of origin as the EU’s Common Commercial Policy (CCP) incentive mechanism that affects the intraregional trade and transaction cost structure of firms engaged in cross-border business operation. The research explores how firms should frame...
Main Authors: | , , |
---|---|
Format: | Article |
Language: | deu |
Published: |
Faculty of Economics University of Rijeka
2010-12-01
|
Series: | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
Subjects: | |
Online Access: | https://www.efri.hr/sites/efri.hr/files/cr-collections/2/05_korez_2010_2.pdf |
_version_ | 1818486440991916032 |
---|---|
author | Romana Korez Vide Klavdij Logožar Milan Jurše |
author_facet | Romana Korez Vide Klavdij Logožar Milan Jurše |
author_sort | Romana Korez Vide |
collection | DOAJ |
description | In this paper we explore the effects of a diagonal cumulation of origin as the EU’s Common Commercial Policy (CCP) incentive mechanism that affects the intraregional trade and transaction cost structure of firms engaged in cross-border business operation. The research explores how firms should frame their crossborder physical flows of goods and the configuration of their value-adding processes for taking advantage of diagonal cumulation of origin. The empirical analysis is based on an in-depth case study of effects of the ‘SAP+ diagonal cumulation of origin’ on changes in the transaction cost structure of a selected Slovenian firm operating within the household-appliance sector in one of the Western Balkan Countries. Based on eligibility of local subsidiary for using origin of goods in its import/export transactions the cost calculations were made for its products and then three different business scenarios were developed for showing the effects of the mechanism on transaction cost changes of a firm. The paper concludes that, at the conceptual level, the mechanism of diagonal cumulation oforigin may serve as an effective institutional cross-border trade-promoting tool |
first_indexed | 2024-12-10T16:23:03Z |
format | Article |
id | doaj.art-b2bb8deb143d4b5a9b4002eed7202fb0 |
institution | Directory Open Access Journal |
issn | 1331-8004 |
language | deu |
last_indexed | 2024-12-10T16:23:03Z |
publishDate | 2010-12-01 |
publisher | Faculty of Economics University of Rijeka |
record_format | Article |
series | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
spelling | doaj.art-b2bb8deb143d4b5a9b4002eed7202fb02022-12-22T01:41:45ZdeuFaculty of Economics University of RijekaZbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu1331-80042010-12-01282221250Diagonal cumulation of origin as the EU’s institutional incentive mechanism for promoting international trade and businessRomana Korez VideKlavdij LogožarMilan JuršeIn this paper we explore the effects of a diagonal cumulation of origin as the EU’s Common Commercial Policy (CCP) incentive mechanism that affects the intraregional trade and transaction cost structure of firms engaged in cross-border business operation. The research explores how firms should frame their crossborder physical flows of goods and the configuration of their value-adding processes for taking advantage of diagonal cumulation of origin. The empirical analysis is based on an in-depth case study of effects of the ‘SAP+ diagonal cumulation of origin’ on changes in the transaction cost structure of a selected Slovenian firm operating within the household-appliance sector in one of the Western Balkan Countries. Based on eligibility of local subsidiary for using origin of goods in its import/export transactions the cost calculations were made for its products and then three different business scenarios were developed for showing the effects of the mechanism on transaction cost changes of a firm. The paper concludes that, at the conceptual level, the mechanism of diagonal cumulation oforigin may serve as an effective institutional cross-border trade-promoting toolhttps://www.efri.hr/sites/efri.hr/files/cr-collections/2/05_korez_2010_2.pdfInternational businessInstitutional incentive mechanismDiagonal cumulation of originEuropean UnionTransaction costsWestern Balkan Countries |
spellingShingle | Romana Korez Vide Klavdij Logožar Milan Jurše Diagonal cumulation of origin as the EU’s institutional incentive mechanism for promoting international trade and business Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu International business Institutional incentive mechanism Diagonal cumulation of origin European Union Transaction costs Western Balkan Countries |
title | Diagonal cumulation of origin as the EU’s institutional incentive mechanism for promoting international trade and business |
title_full | Diagonal cumulation of origin as the EU’s institutional incentive mechanism for promoting international trade and business |
title_fullStr | Diagonal cumulation of origin as the EU’s institutional incentive mechanism for promoting international trade and business |
title_full_unstemmed | Diagonal cumulation of origin as the EU’s institutional incentive mechanism for promoting international trade and business |
title_short | Diagonal cumulation of origin as the EU’s institutional incentive mechanism for promoting international trade and business |
title_sort | diagonal cumulation of origin as the eu s institutional incentive mechanism for promoting international trade and business |
topic | International business Institutional incentive mechanism Diagonal cumulation of origin European Union Transaction costs Western Balkan Countries |
url | https://www.efri.hr/sites/efri.hr/files/cr-collections/2/05_korez_2010_2.pdf |
work_keys_str_mv | AT romanakorezvide diagonalcumulationoforiginastheeusinstitutionalincentivemechanismforpromotinginternationaltradeandbusiness AT klavdijlogozar diagonalcumulationoforiginastheeusinstitutionalincentivemechanismforpromotinginternationaltradeandbusiness AT milanjurse diagonalcumulationoforiginastheeusinstitutionalincentivemechanismforpromotinginternationaltradeandbusiness |