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...

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Main Authors: Romana Korez Vide, Klavdij Logožar, Milan Jurše
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
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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
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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
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AT klavdijlogozar diagonalcumulationoforiginastheeusinstitutionalincentivemechanismforpromotinginternationaltradeandbusiness
AT milanjurse diagonalcumulationoforiginastheeusinstitutionalincentivemechanismforpromotinginternationaltradeandbusiness