The Impact of Foreign Trade on Markup Size

Ponikvar, Nina; Tajnikar, Maks

doi:10.2753/eee0012-8775500103

Cited by 4 publications

(10 citation statements)

References 33 publications

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“…The greater the product differentiation, the greater the profitability linked to exports (Yurtoglu, 2004). Relating to imports, there is broad consensus that imports may positively affect profitability if import penetration encourages local companies to enhance their innovation and competitiveness (Ponikvar & Tajnikar, 2012). To evidence that an importer premium exists, the quality channel is pointed out: Importing allows access to high-quality intermediate inputs, that can rotate out the demand curve and make it less elastic, which would imply higher mark-ups (Hornok & Muraközy, 2019).…”

Section: Presence In International Marketsmentioning

confidence: 99%

“…Both provide key information to design firms’ future strategies (Zainudin et al., 2018). We approach the analysis from these two perspectives including: (i) firm‐specific factors, linked to firms’ market power (Ponikvar & Tajnikar, 2012); some studies found them to be the most important factor to explain business results (Blažková & Dvoulety, 2018; González et al., 2000; McGahan & Porter, 1997, 2002; Rumelt, 1991); (ii) industry‐specific factors, which analyze the extent to which the characteristics of the industry to which the firm belongs are linked to their results (González et al., 2000; McGahan & Porter, 1997); (iii) location factors, which base the explanation on the effects of agglomeration and spatial location (Arias et al., 2020; Castro et al., 2019; Krugman, 1991). There is one principal research question: Are there significant differences in cooperatives’ profitability depending on firm‐specific, industry‐specific and/or location factors?…”

Section: Introductionmentioning

confidence: 99%

“…On the other hand, some studies find a negative link between presence in international markets and profitability. Higher exterior competition exposure and the increasingly frequent fluctuations in international markets mean that exports may negatively affect profitability (Ponikvar & Tajnikar, 2012; Yurtoglu, 2004). In the same vein, imports can have a negative effect when the penetration of foreign firms is due to the presence of high prices that leads them to perceive the possibility of obtaining higher mark‐ups (Ponikvar & Tajnikar, 2012).…”

Section: Introductionmentioning

confidence: 99%

“…Higher exterior competition exposure and the increasingly frequent fluctuations in international markets mean that exports may negatively affect profitability (Ponikvar & Tajnikar, 2012; Yurtoglu, 2004). In the same vein, imports can have a negative effect when the penetration of foreign firms is due to the presence of high prices that leads them to perceive the possibility of obtaining higher mark‐ups (Ponikvar & Tajnikar, 2012). Moreover, a negative relationship can be caused by factors such as a lack of knowledge of the foreign market, customer mistrust, structure costs or agency costs, among the main ones (Marín et al., 2013).…”

Section: Introductionmentioning

confidence: 99%

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What are the determinants affecting cooperatives’ profitability? Evidence from Spain

Ríos

2023

Ann Public Coop Econ

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This study focuses on the analysis of the determinants of Spanish cooperatives’ profitability. We inspect several variables, whose influence on firms’ profitability has been verified by prior literature, and we assess whether these results are confirmed in cooperatives. The data span 13 years (2008–20). We approach the analysis including: (i) firm‐specific factors, (ii) industry‐specific factors, and (iii) location factors. There is a main research question: Are there significant differences in cooperatives’ profitability depending on firm‐specific, industry‐specific and/or location factors? The results emphasize that firm‐specific effects are the most important for cooperatives’ profitability. Summarizing our findings, cooperatives’ profitability is positively affected by size, liquidity, indebtedness, regional specialization in cooperatives, location economies, and lagging profitability, and negatively affected by age and presence in international markets.

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Section: Presence In International Marketsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

What are the determinants affecting cooperatives’ profitability? Evidence from Spain

Ríos

2023

Ann Public Coop Econ

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“…The concept of international trade is analysed by authors widely (Cassey (2012), Engel et al (2012), Lee (2012), Neary et al (2012), Ponikvar et al (2012)).…”

Section: The Concepts Of International Trade and Its Developmentmentioning

confidence: 99%

International Trade and E-Commerce in the Practice of Enterprises Activity

Burinskienė¹

2012

EurInsStud

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The article discusses the ability of European Union enterprises to develop international trade and to apply e-commerce technologies for such development.The analysis of economic scientific literature on international trade published by Oxford University Press, Cambridge University Press, Harvard University Press, Springer, M. E. Sharpe, Routledge, etc. show that 30% of authors (from 0.4 mln. in total) are talking about the development of international trade. 9.4% of these authors mention the role of enterprises in such development. Most of these authors analyse the role of trade enterprises (it is mentioned by 8% of authors), production enterprises (it is mentioned by 6.5% of authors). Also they mention ability of enterprises to develop international trade as well (it is mentioned by 1.3% of authors).The analysis of literature shows that international trade should be understood and analysed from the perspectives of enterprises activity. Therefore, it is important to reveal the ability of enterprises to develop international trade in the current challenging conditions, to evaluate, if enterprises, taking into account the new circumstances, are able to respond and adapt to these challenges adequately. One of the challenges is the application of new technologies in the development of international trade. One of such technologies is e-commerce technologies, supporting development of trade in foreign markets. Under conditions of the application of e-commerce technologies buyers and sellers become less dependent on place. By applying e-commerce technologies both tangible and intangible goods may be realized in foreign markets.Considering enterprises' ability to develop international trade greater attention must be paid to those, who are located in member states of European Union (EU). Analyse of World trade volumes reveals that the largest part of these volumes is delivered by EU enterprises.So, the paper presents the results of investigations in this context. The aim of the research is to propose framework that incorporates factors determining the ability of companies to develop international trade.The study presented in the paper contains three different aspects. First, the development of international trade is disclosed from different perspectives, including e-commerce as well. Second, the framework that incorporates factors determining the ability of companies to develop international trade is presented. Third, the application of framework for EU production and trade enterprises is given.The article is based on comparative and multiple criteria analysis. For the suggested framework, a set of criteria and the multiple criteria evaluation method (COPRAS) is used.The proposed approach can be useful for authors who analyse the development of international trade.

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Factors Affecting Wine Price Mark-up in Restaurants

Livat

Remaud

2018

J Wine Econ

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The purpose of this study is to examine how restaurants determine the percentage of wine mark-up. Wine sales are a substantial contributor to restaurants’ profitability, therefore a better understanding of the factors affecting mark-up is critical for the industry. Here, the mark-up is expressed as a percentage over the cost and refers to a cost-plus pricing strategy. Sommeliers from around the world, the majority of whom were members of the International Sommelier Association, were approached to complete our Internet-based questionnaire administered between February 2014 and May 2014. Of the 800 who began the survey, 267 fully completed the questionnaire, generating 1,869 observations. We regressed the declared percentage mark-up against restaurant and wine list characteristics, including managerial practices and wine steward characteristics, and showed that if the restaurants apply a simple rule of thumb to set wine prices, focusing on every price segment, it appears that sommeliers do not have much impact on the percentage mark-up. (JEL Classifications: C23, D21)

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The Impact of Foreign Trade on Markup Size

Cited by 4 publications

References 33 publications

What are the determinants affecting cooperatives’ profitability? Evidence from Spain

What are the determinants affecting cooperatives’ profitability? Evidence from Spain

International Trade and E-Commerce in the Practice of Enterprises Activity

Factors Affecting Wine Price Mark-up in Restaurants

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