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Intra-firm Trade (intra-firm + trade)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting66%

Selected Abstracts

TNC Strategies and Variations in Intra-firm Trade: The Case of Foreign Manufacturing Affiliates in Sweden

GEOGRAFISKA ANNALER SERIES B: HUMAN GEOGRAPHY, Issue 1 2000
Inge Ivarsson
The aim of this paper is to contribute to the understanding of the forms and determinants of intra-firm trade, i.e. international trade between different units under common TNC ownership, this being a major indication of ,deep economic integration' between developed countries in the 1990s. Theoretically, intra-firm trade can be explained by the existence of economies of common governance and are often found to be associated with R&D-intensive industries and economies of scale. In empirical studies, intra-firm trade is often found to consist of intermediate inputs goods, resulting in vertically integrated production chains. The study is based on detailed firm-level data from around 300 foreign majority-owned affiliates (MOFAs) in manufacturing, in Sweden in 1993. The results show that intra-firm sales by MOFAs in Sweden are as high as those found in studies of manufacturing affiliates of US TNCs. Almost all of MOFAs' intra-firm exports are finished products, while intra-firm imports consist of material inputs and finished products for resale. This suggests that these MOFAs are only marginal involved in vertically integrated production chains, especially in terms of exports. The results of a regression analysis complement earlier studies by showing that the level and composition of intra-firm trade is significantly affected by the international strategy applied by TNCs when operating foreign manufacturing affiliates. Intra-firm exports of finished products and material inputs are positively associated with efficiency-seeking FDI, e.g. affiliates engaged in rationalised production. Market-seeking FDI is associated with intra-firm imports of complementary finished products for resale. By contrast, resource-seeking and strategic asset-seeking FDI was negatively associated with intra-firm trade. [source]

Intra-firm trade in the context of European integration: evidence from the French multinational agribusiness

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 1 2009
Emmanuelle Chevassus-Lozza
This article identifies the factors that lead multinational firms to internalize their international exchanges and aims to determine the impact of the implementation of the Single European Market on firms' strategies. We analyze the interaction between the microeconomic characteristics of firms and those of their environment because this interaction determines a multinational firm's decision to internalize trade. The empirical work is based on the ,industrial globalization' survey conducted by the French statistics institutes in 1993 and 1999. With regard to the French agri-food trade, there has been an increase in intra-firm (IFT) trade within the EU-15 borders and the European multinational networks. The main determinants of intra-firm trade are the firms' need to generate economies of scale and to protect and exploit their ,firm-specific advantages' related to the technology and nature of the product. The model sheds light on the role and the development of intra-regional networks of subsidiaries. [JEL classifications: F10, F14, F23]. © 2009 Wiley Periodicals, Inc. [source]

TNC Strategies and Variations in Intra-firm Trade: The Case of Foreign Manufacturing Affiliates in Sweden

GEOGRAFISKA ANNALER SERIES B: HUMAN GEOGRAPHY, Issue 1 2000
Inge Ivarsson
The aim of this paper is to contribute to the understanding of the forms and determinants of intra-firm trade, i.e. international trade between different units under common TNC ownership, this being a major indication of ,deep economic integration' between developed countries in the 1990s. Theoretically, intra-firm trade can be explained by the existence of economies of common governance and are often found to be associated with R&D-intensive industries and economies of scale. In empirical studies, intra-firm trade is often found to consist of intermediate inputs goods, resulting in vertically integrated production chains. The study is based on detailed firm-level data from around 300 foreign majority-owned affiliates (MOFAs) in manufacturing, in Sweden in 1993. The results show that intra-firm sales by MOFAs in Sweden are as high as those found in studies of manufacturing affiliates of US TNCs. Almost all of MOFAs' intra-firm exports are finished products, while intra-firm imports consist of material inputs and finished products for resale. This suggests that these MOFAs are only marginal involved in vertically integrated production chains, especially in terms of exports. The results of a regression analysis complement earlier studies by showing that the level and composition of intra-firm trade is significantly affected by the international strategy applied by TNCs when operating foreign manufacturing affiliates. Intra-firm exports of finished products and material inputs are positively associated with efficiency-seeking FDI, e.g. affiliates engaged in rationalised production. Market-seeking FDI is associated with intra-firm imports of complementary finished products for resale. By contrast, resource-seeking and strategic asset-seeking FDI was negatively associated with intra-firm trade. [source]

Intra-firm trade in the context of European integration: evidence from the French multinational agribusiness

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 1 2009
Emmanuelle Chevassus-Lozza
This article identifies the factors that lead multinational firms to internalize their international exchanges and aims to determine the impact of the implementation of the Single European Market on firms' strategies. We analyze the interaction between the microeconomic characteristics of firms and those of their environment because this interaction determines a multinational firm's decision to internalize trade. The empirical work is based on the ,industrial globalization' survey conducted by the French statistics institutes in 1993 and 1999. With regard to the French agri-food trade, there has been an increase in intra-firm (IFT) trade within the EU-15 borders and the European multinational networks. The main determinants of intra-firm trade are the firms' need to generate economies of scale and to protect and exploit their ,firm-specific advantages' related to the technology and nature of the product. The model sheds light on the role and the development of intra-regional networks of subsidiaries. [JEL classifications: F10, F14, F23]. © 2009 Wiley Periodicals, Inc. [source]

Transfer prices and the structure of intra-firm trade

CANADIAN JOURNAL OF ECONOMICS, Issue 1 2000
Vibhas Madan
In this paper the structure of intra-firm trade within the context of transfer price manipulation by a multinational firm is endogenized. ,High' and ,low' values of host-country tax rates give rise to intra-firm trade in final goods and intermediate inputs, and ,intermediate' values of the tax rate are associated with intra-firm trade in either the intermediate inputs or the final goods only. Higher tariffs and stricter local content restrictions bias intra-firm trade towards intermediate-good trade and final-good trade, respectively. In the presence of endogenous transfer prices host-country sales may increase if the multinational faces stricter trade restrictions and higher host-country tax rates. JEL Classification: F23, F12 Prix de cession interne et structure du commerce itnra-firme. Ce mémoire endogénéise la structure du commerce intra-firme dans le contexte d'un modèle qui permet la manipulation du prix de cession interne par une firme plurinationale. Des taux de taxation hauts et bas par le pays hôte entraînent un commerce international intra-firme tant dans les biens finaux que dans les intrants intermédiaires; des taux moyens de taxation sont associés à un commere intra-firme soit dans les intrants intermédiaires, soit dans les biens finaux mais pas dans les deux. Des droits de douane élevés et des restrictions sur le contenu intérieur plus importantes créent des distorsions en faveur du commerce intra-firme dans les biens intermédiaires et dans les biens finaux respectivement. Quand il existe des prix de cession interne endogènes, les ventes de la firme nationale peuvent s'accroître si la firme plurinationale fait face à des restrictions au commerce plus importantes et à des taux de taxation plus élevés de la part du pays hôte. [source]