Top PDF International diversification at home and abroad

International diversification at home and abroad

International diversification at home and abroad

the Federal Reserve System. Warnock is also Visiting Associate Professor at the University of Virginia’s Darden Graduate School of Business. The authors are indebted to Sara Holland for her excellent research assistance and helpful comments. We also thank two anonymous referees, Ben Bernanke, Mark Carey, Javier Estrada, Jill Faucette, John Griffin, Philipp Hartmann, Cam Harvey, Jane Ihrig, Marcin Kacperczyk, Alex Rothenberg, Veronica Cacdac Warnock, Jonathan Wright, and seminar participants at Arizona State University, Federal Reserve Board, Kiel Institute, University of Utah, and the 2004 FMA for helpful comments and/or assistance. We thank Linda Goldberg for providing access to her data on industry trade weights and Jane Ihrig and David Prior for their associated SAS code. The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Board of Governors of the Federal Reserve System or of any other person associated with the Federal Reserve System. The statistical analysis of security- level data on foreign investors’ holdings reported in this study was conducted at the International Finance Division of the Board of Governors of the Federal Reserve System under arrangements that maintained legal confidentiality requirements. email: fang.cai@frb.gov , frank.warnock@frb.gov .
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Investments Abroad and Performance at Home Evidence from Italian Multinationals

Investments Abroad and Performance at Home Evidence from Italian Multinationals

The key effect we are interested in is contribution to home real income. Do firms improve performance at home by investing abroad? Theoretical predictions are not clear cut. There are three main reasons why opening and running foreign subsidiaries affect domestic productivity: the exploitation of firm- level and plant- level scale economies; the change in the composition of inputs used in production; the opening of new channels of international sourcing of technological and managerial knowledge. These sources of productivity change may work in both directions, depending on the features of the investment. The scale of home activities could decline or increase; technologies could be acquired in foreign markets or get depleted to foreign competitors; home activities could get strengthened or impoverished by changes in their factor use (see Barba Navaretti, Venables et al., 2003 for a thorough discussion of this issue).
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Outsourcing versus Integration at Home or Abroad

Outsourcing versus Integration at Home or Abroad

In recent decades the strong growth of trade in intermediate inputs and the increase in foreign direct investment (FDI) have been major features of international trade. A useful conceptual framework to address these issues is the assumption that a firm which needs an intermediate input has to make a two-dimensional choice: it has to decide where to produce the good (at home or abroad) and how to produce it (in-house or outsourced to another firm). Combining these two choices yields four possibilities: an input can be produced in the home country, either in-house (domestic integration) or not (domestic outsourcing), or it can be produced in a foreign country, again either in-house (foreign integration or FDI) or not (foreign outsourcing). As argued by Helpman (2006a), “an understanding of what drives these choices is essential for an understanding of the recent trends in the world economy”. Several theoretical models, at the crossroads of industrial organization and international trade, have been developed (Antr` as 2003, 2005, Antr` as and Helpman 2004, Grossman and Helpman 2004, Antr` as and Helpman 2008). Despite a rich set of predictions, the empirical literature is far from abundant and provides only partial and incomplete pictures of sourcing strategies. Using trade data, some studies look at intra-firm imports as a proxy of
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The impact of locating production abroad on activities at home

The impact of locating production abroad on activities at home

We find no support to the claim that activities of multinational firms abroad exports jobs from Germany to the host countries. If anything, we find a positive effect of the internationalization decision on employment growth at home. This effect is not significant for all sub-samples but robust in size, and certainly it does not result from a small number of outliers. We conclude this from a sample of firms that decided to establish their first affiliate abroad which we matched to statistically identical firms which did not hold a foreign affiliate during the whole period analyzed, i.e. from 1997 to 2003. We made sure that switching firms and control firms from the same year and sector are matched in our analysis. We used 3 nearest neighbor matching.
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Price Rigidity in China: Empirical Results at Home and Abroad

Price Rigidity in China: Empirical Results at Home and Abroad

The last three columns of Table 3 summarize the persistence of prices. Coefficients of autoregressive models are added to measure the degree of persistence. Aggregated PPI shows higher persistence (0.77) than disaggregated prices (0.29), including disaggregated PPI (0.35). However, the trends for CPI and RPI are different. Aggregated CPI and RPI are stickier than their corresponding disaggregated series. Monacelli and Sala [2009] similarly reported that aggregated CPI and RPI were less volatile and less persistent than their disaggregated counterparts in Germany, France, the U.K., and the U.S. The inflation in global and domestic common components is generally more persistent than the sector-specific inflation for both aggregated and disaggregated prices. As a result, the long-term inflation in China is more likely to be affected by common factors from economic fundamentals at home or abroad. Inflation in aggregated prices driven by domestic components exhibits the greatest persistence, whereas inflation in disaggregated prices driven by global components lasts longest. The sectoral components are shown to be less persistent.
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Islamophobia Abroad and Anti Catholicism at home: The Making of the English Nation

Islamophobia Abroad and Anti Catholicism at home: The Making of the English Nation

Lawyers’ litigation forecasts play an integral role in the justice system History Research, ISSN 2159 550X July 2012, Vol 2, No 7, 461 466 Islamophobia Abroad and Anti Catholicism at home The Making o[.]

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Relative Performance Evaluation—A Review of Recent Literature at Home and Abroad

Relative Performance Evaluation—A Review of Recent Literature at Home and Abroad

DOI: 10.4236/me.2019.104084 1230 Modern Economy ation. However, domestic research focuses on the investigation of the existence and influencing factors of relative performance evaluation based on traditional industry classification standards, but the investigation of family enterprises is different from the research based on independent enterprises abroad. In the part of economic consequences, foreign research studies are carried out in terms of organizational identity, risk decision-making, promotion incentives, and human resource conservation. Domestic research has only two studies on the impact of salary growth and salary ratcheting effect, which seems to be fewer compared with foreign countries. In the review and prospects of the research, this paper summarizes the focus and inadequacies of research at home and abroad in re- cent years.
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Trade costs, Openness and Productivity: Market Access at Home and Abroad

Trade costs, Openness and Productivity: Market Access at Home and Abroad

Of course this is true, but can open home markets not an aim in itself? This paper tentatively concludes that the benefits of openness on productivity and income stem to a large extent from imports and inward FDI. This argument is not often heard in policy circles. More (foreign) competition at the home markets implies also reallocation including firms which have to exit and employees who loose their job. These reallocation processes are at the individual level not painless. However, the overall benefits are clear: lower prices, larger variety of inputs and consumption goods, higher productivity, stimulus for innovation and better accessibility of foreign knowledge and technology. These benefits of opening up own markets further could underpin a unilateral trade and inward FDI policy. This would not only consist of eliminating remaining import tariffs but also simplifying customs procedures, reducing NTBs, opening offices and information points for potential foreign investors and
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Liquidity Risk and U.S. Bank Lending at Home and Abroad

Liquidity Risk and U.S. Bank Lending at Home and Abroad

This table reports the effects of liquidity risk conditions, central bank facility use, and firm characteristics on growth in domestic and foreign C&I lending and credit. Panels A and B respectively observe samples of banks without and with foreign affiliates, and Panel B includes additional regressions for changes in aggregate cross-border claims, foreign-office claims, and net due to (or net due from). The underlying fixed effects regressions are presented in Appendix 3. Results without fixed effects are presented in Appendix 4. Reported separately in each panel are the implied marginal effects for periods in which individual institutions used central bank liquidity facilities. The reported coefficients are the linear combination of the coefficients on the respective LIBOR-OIS and LIBOR-OIS*Facility interaction terms. Beginning-of-quarter assets are used to standardize growth in liquid assets, loans, and net due to, while assets and commitments, together, are used to standardize credit growth. The data are quarterly from 2006Q1 to 2012Q4 for a panel of bank holding companies. The panel is restricted to bank holding companies with greater than $10 billion in total assets (2012 prices) during its final quarter in the sample. Banks are judged to have a foreign affiliate if they report positive aggregate foreign-office claims in the FFIEC 009. Banks that report zero foreign-office claims or do not report the FFIEC 009 are considered not to have a foreign affiliate. To mitigate the effect of bank mergers on the dependent variable, banks are excluded in a particular quarter when asset growth exceeds 10%. Firm characteristic data comes from the FR Y9-C and are aggregated to the highest domestic holding company. The net due to (or due from) variable is reported in the FFIEC 031 and measures a bank’s total net internal lending (or borrowing) vis-à-vis all its related domestic and international offices from the perspective of the head office. Given that the flows include domestic intra-bank lending, net due to observations are excluded for banks without foreign affiliates. Loan-level data on banks’ borrowing through the Discount Window and Term Auction Facility are available through Federal Reserve Board of Governors’ website. The LIBOR-OIS is the quarterly average of the daily difference between the London Interbank Offered Rate and the effective federal funds rate. Growth variables are winsorized at the 1st and 99th percentiles. All specifications include bank and time fixed effects. Standard errors are clustered by bank. ***, **, and * respectively indicate significance at the 1%, 5%, and 10% level.
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Strategic Cost Management—A Review of Research Status at Home and Abroad

Strategic Cost Management—A Review of Research Status at Home and Abroad

Cost management is a long-standing research topic in the field of manage- ment accounting. In today’s, cost management has been closely linked to the company’s strategy, and has become an important way for enterprises to build competitive advantage and create core competitiveness. In order to un- derstand the development of strategic cost management in recent years, in order to inspire future research directions, this paper mainly selects the do- mestic and international literature on strategic cost management issues from 2013 to 2017, their research content, research framework, and research me- thods. The conclusions of the study are summarized. It is found that the stra- tegic cost management research shows the characteristics of using empirical research and clear research framework. Finally, based on this, the future re- search is proposed.
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At home abroad: the life experiences of children of migrant workers in Scotland

At home abroad: the life experiences of children of migrant workers in Scotland

Being ‘at home’ most often meant back in their country of origin, but also in Scotland, and for some both places were ‘home’. Children often brought home knowledge about the Scottish culture and shared them with their families, becoming ‘cultural brokers’. Ways of keeping their native culture alive included cooking traditional meals, observing traditional holidays, attending church and events through diaspora groups and reading papers online.

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From Citizenship to Custody: Unwed Fathers Abroad and at Home

From Citizenship to Custody: Unwed Fathers Abroad and at Home

In both the immigration and domestic equal protection cases, the unwed father begins from an absence-the absence of the legal tie of marriage- which the Court extends to[r]

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The Terrorist Threat: US Facing New Challenges at Abroad and at Home

The Terrorist Threat: US Facing New Challenges at Abroad and at Home

This incident, in which three Americans were killed and over 200 wounded, reflects the reality that homegrown terrorism in the United States will remain a threat indefinitely. The Boston Marathon bombings were quickly followed by an announcement from the Canadian Government that its security authorities had thwarted a plan by two extremists living in Toronto to bomb a passenger train on Canadian soil that was bound for or leaving from New York City. Even though Canadian authorities, working closely with US security officials, disrupted the plot long before it could be executed, the arrests further underscore the internal security challenges facing the United States at all levels of government. The threat of small, infrequent internal terrorist attacks will not go away; in the Boston case, it involved young extremists of Chechen descent whose assimilation into American society was less than complete. Globally, the terrorism landscape continues to change rapidly. The terrorist threat to US interests and citizens has become more diverse and geographically distributed. As a consequence, events abroad suggest that the inbound threat to the US homeland may over time increase. The “Arab Spring” has turned to the “Arab Winter” in Egypt and Libya. Without a US presence in Iraq, moreover, ideological Islamic extremists are emerging in large numbers and sectarian violence in Iraq is again reaching major proportions.
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Liquidity Risk and U.S. Bank Lending at Home and Abroad

Liquidity Risk and U.S. Bank Lending at Home and Abroad

Table 3: International Claims and Liquidity Risk, using Bank-Location-Specific Data This table reports the marginal effects, as liquidity conditions worsen, of firm characteristics and central bank credit facility use on growth in country-specific cross-border and foreign-office claims. The underlying fixed effects regressions are presented in Appendix 4. For each firm characteristic variable and corresponding interactions with Core Funding and Core Investment, the No Use, Use, and Difference columns respectively represent, from the underlying regressions, the coefficient on the LIBOR-OIS interaction terms, the linear combination of the coefficients on the LIBOR-OIS and LIBOR-OIS*Facility interaction terms, and the difference between the two. Beginning-of-quarter assets are used to standardize growth in the dependent variables. Cross-border and foreign-office claims are measured on an immediate counterparty basis. The data are observed quarterly from 2006Q2 to 2012Q4 for a panel of U.S. bank holding companies. The panel is restricted to bank-holding companies with greater than $10 billion in total assets (2012 prices) during its final quarter in the sample. For growth in foreign-office claims, the sample excludes observations when country-specific foreign-office claims are zero in both the current and previous quarter. To mitigate the effect of bank mergers on the dependent variables, banks are excluded in quarters when asset growth exceeds 10%. Firm characteristic data comes from the FR Y9-C and are aggregated to the highest domestic holding company. Data on country-specific bank exposures are from the FFIEC 009. The net due to (or due from) variable measures a bank’s total net internal lending (or borrowing) vis-à-vis all its related offices in other countries. Reported in the FFIEC 009, these flows reflect the perspective of the foreign office. International claims are consolidated into regional aggregates for smaller and static exposures
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TREASURES AT RISK: MUSEUM SECURITY AT HOME AND ABROAD

TREASURES AT RISK: MUSEUM SECURITY AT HOME AND ABROAD

As a security consultant for a client with facilities in Italy, I saw that the night shift museum guards officially or unofficially carry firearms more often in Italy and elsewhere i[r]

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Understanding Precautionary Cash at Home and Abroad

Understanding Precautionary Cash at Home and Abroad

(has no foreign operations) and zero otherwise. The coefficient in column III is 0.056, meaning domestic firms have cash holdings which are 5.6 percent of book assets greater then foreign firms holding all other variables constant. MNCs have less domestic cash, all else being equal, and have more cash held abroad (by construction). Since the average Effective Tax Rate is higher for domestic firms than MNCs, if we included this effect the result would be even larger. MNCs’ total cash, controlling for firm characteristics, is slightly smaller than domestic firms (β=−0.015; table 3, column I). The simple averages in table 1 show the same result. This is inconsistent with the summary statistics of Pinkowitz, Stulz, and Williamson (2015), which suggest MNCs hold more cash.
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Home Abroad

Home Abroad

In our town, children are expected to walk to school alone when they begin school at the age of six. Seeing children at recess for the first time can be frightening: children run past onto the brick courtyard, almost knocking you down to retrieve a soccer ball; they climb and then hang upside down on monkey bars, give each other piggy back rides. They are generally left alone to make up their own games and sort out their spats. At noon or one o’clock, depending on their grade level, many children walk home from school for lunch. Others go to lunch at an afterschool care program. An all-day school day was introduced here last year, but most families still choose to have their children in the traditional half-day program. Many mothers work part-time or use their generous government-sponsored parental leave time to stay home with their young children. School children’s afternoons are spent doing homework and then playing sports or playing with friends. Here, children have a good bit of unstructured time to daydream in their yards, play tag, build forts, play hide-and-seek or ride their bikes--a childhood not unlike those that Beverly Cleary depicts in her Henry
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Aspects of the agricultural crisis at home and abroad

Aspects of the agricultural crisis at home and abroad

The combined effects of this benefit payment, and of the increase in market price from 6.5 to 9.6 cents which resulted from the reduction of supply, was to raise the farm value of the-19[r]

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Understanding Precautionary Cash at Home and Abroad

Understanding Precautionary Cash at Home and Abroad

Breaking out the domestic and foreign cash positions separately provides additional insight. For multinationals, the effective tax rate does not explain domestic cash levels. However, for foreign cash holdings, the estimated coefficient is highly negative, both economically and statistically. This implies that firms with lower effective tax rates hold more foreign cash, consistent with the Foley et al. (2007) argument that if firms are confronting lower tax rates abroad, their repatriation tax is higher, and this incentivizes the stockpiling of foreign cash. A firm’s strategic choice to reduce its effective tax rate is something we will discuss below, but this divergence between drivers of foreign and domestic cash is consistent with firms moving cash abroad when there is less need for precautionary cash. Importantly, proxies for precautionary motives are not relevant for explaining foreign cash. Precautionary motives are the main drivers of firms’ domestic cash levels. The variables used in the prior literature to measure firms’ capital constraints and risk, and which have predicted total cash, also predict domestic cash. A firm’s effective marginal tax rate (the foreign tax rate it faces) has little ability to explain the firm’s domestic cash holdings. Our results show that the factors that explain domestic and foreign cash holdings are quite distinct.
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The Early Republic: Conflicts at Home and Abroad,

The Early Republic: Conflicts at Home and Abroad,

In their response to the Alien and Sedition Acts, the Democratic-Republicans advanced the extreme states’ rights position that a state has the power of judicial review and may declare [r]

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