Suchergebnisse

"Fixed transaction costs and delivery lags are important costs of international trade. These costs lead firms to import infrequently and hold substantially larger inventories of imported goods than domestic goods. Using multiple sources of data, we document these facts. We then show that a parsimoniously parameterized model economy with importers facing an (S, s)-type inventory management problem successfully accounts for these features of the data. Moreover, the model can account for import and import price dynamics in the aftermath of large devaluations. In particular, desired inventory adjustment in response to a sudden, large increase in the relative price of imported goods creates a short-term trade implosion, an immediate, temporary drop in the value and number of distinct varieties imported, as well as a slow increase in the retail price of imported goods. Our study of 6 current account reversals following large devaluation episodes in the last decade provide strong support for the model's predictions"--National Bureau of Economic Research web site

After President Obama's announcement in early 2015 of increased relations with the Cuban government despite the existing Cuban embargo under the Helms–Burton Act and the Cuban Democracy Act, Carnival Cruise line made history in July of 2015 when it became the first United States cruise line to receive approval from both the United States Department of Treasury and the United States Department of Commerce to offer cruises to Cuba. Since its introduction, there has been wide increase in Cuba's tourism industry. However, Cuban regulations still regulate where and how cruise lines can travel. The increased relations are still in their infancy, leaving uncertainty regarding United States travel to the island and how much liability is imposed on businesses should their passengers violate Cuban laws. As it stands, U.S. passengers and businesses do not fully understand the legal ramifications of possible violations with Cuban law. For this reason, American cruise lines should take preemptive measures such as providing clear instructions prior and during embarkation to better equip Americans citizens abroad.