Earticle

Among the factors determining customs duties, the standard of assessment is the most controversial due to the asymmetry of information. Importers themselves are required to calculate and to pay the amount of customs duties of goods imported. But the additional tax collection can be imposed on the self-declared the customs duties to rectify the mistakes or errors of the importers. The cases have been reviewed with regards to the customs valuation. And the findings are the main cause of the tariff evasion was the omission of taxation price. The purpose of this paper is to re-evaluate the importance of role of the trade documents such as sales contract and commercial invoice because their importance is beyond the simple requirement as transactional evidence. The proper trade documents would enable importers to pay the correct customs and to avoid the post-taxation. Also efficiency in predictability and price competitiveness can be enhanced by reducing the number of additional examination and collections.

The EXW and FOB rules of Incoterms are used in the criterion of price of the originating and non-originating materials of value contents criterion, tolerance(de minimis) and sets of goods rule among FTA rules of origin. If a trading companies want to benefit from FTA preferential tariffs, they should understand and establish the utilization strategy for the Incoterms under the contract of sale and FTA rules of origin. The purpose of this study is to examine the application criterion and practical implications of EXW and FOB rules under FTA rules of origin. Through this study, this paper is to provide several implications for companies seeking the benefits of FTA preferential tariffs. Therefore, the Korean companies to do the following: confirm of pricing criterion under FTA rules of origin, confirm the precise application criterion of value contents criterion stipulated in FTAs, confirm the precise application criterion of tolerance rule stipulated in FTAs, and prepare against origin verification of customs authority.

This paper analyzes the success of the LEGO corporation, as a case study of value-based services for sustainable business, one of the most successful brands in toy industry. Even LEGO suffered in 2003 and 2004 from the biggest deficit in history, however, due to internal strategic changes, they managed to overcome a renovating step in the direction of securing the foundation of LEGO and their financial situation before the global crisis, ranked as the biggest company in their industry. We are interested in knowing what the secret to success is for the LEGO Group? Porter's Five Forces model is very effective in analyzing the LEGO's tactics and employing them to the circumstances of the customers. Section II will examine a Porter's Five Forces Analysis of LEGO. Section III will analyze the successful factors of LEGO and its implications. Finally, conclusions are provided in Section IV.

This paper empirically analyzes the effects of foreign direct investment (FDI) on financial performance of marine transportation companies between 2005 and 2013. By using firm-level data of 407 companies in marine transportation sector during the sample period, we find that FDI companies experience severe financial difficulties with respect to companies that do not engage in FDI. Considering that marine transportation company’s FDI decision is largely affected by the foreign corporate tax rates, we estimate two-stage least squares model to find that an increase in foreign investment that is made to the foreign subsidiaries from exploiting low foreign corporate tax rates significantly worsens financial performance of parent firms over time. These results provide evidence that recent collapse of Korea’s top marine transportation companies is partially associated with prior FDI increase.

In December 2015, the FTA was officially in force with China. Accordingly, various studies have been conducted to utilize the Korea-China FTA. In the previous research, only the Korea-China FTA is analyzed. With the variety of FTAs, Korean FTAs require an analysis of country interrelationships. Although an FTA is signed with a trading partner, in reality it is not signing an FTA with a single country. In this study, we present the correlation of FTA strategy through an analysis of the origin of criteria in the medical device industry as follows: First, it should consider supply lines imported parts/materials. Second, roll-up criteria and intermediate goods provisions based on the value added value criteria. Third, the cumulative provision strategy of parts and materials is needed.

Even though there exists a fraud in the Letter of Credit(L/C) transaction, the fraud rule cannot be applied into every case. The parties in the L/C transaction that meet certain requirements can be excluded from the application of the fraud rules even if there is a fraud in the L/C transaction. Moreover, UCP(Uniform Customs and Practice for Documentary Credits) does not have any regulations on fraud rules, so it is subject to the national laws of each country. In practice, there is no internationally uniform rule regarding the exception of fraud rules. Therefore, the countries like United States and China have enacted and enforced a law related to the L/C fraud rule because the banks in those countries open lots of L/C. This paper verifies what kind of qualifications of Chinese parties in L/C transaction can be an exception of application to the L/C fraud rules. Moreover, this paper analyzed the features and problems related to the exception from the application of Chinese L/C fraud rules and also suggested some precautions to our companies who deal with Chinese companies under L/C transaction.

The influence strategy is one of the way to exert leverage. Researches about influence strategy show conflicting results due to complexity in exerting leverage. Conflicting of research result indicates that exerting of identical influence strategy could result in opposite way. Since unusual circumstances of distributing system have crucial influence on a function and nature of exchanging relation. Therefore, results of investigation on the influence strategy could diverge according to conditions even when strategies are identical. However, few researches were done on comparing influence strategy of members of marketing channel with diverse cultural strategy, so comparing manufacturer and distributor of Korea, U.S, Japan is important in understanding relationship between members of marketing channel. Most of existing studies in the influence strategies of manufacturing firms have focused on single marketing channel, so it is unreasonable to uniformly apply their findings to respective countries. Therefore, this study sought to demonstrate effectiveness in Korean, American and Japanese manufacturinf firms: This study is consistent with a latest trend of academic investigations into influence strategies and it is also of practical consequence in that it shows a guideline on which of influence strategies should be adopted and exerted by boundary person of organizational divisions related to influence strategy in Korea, United States and Japan.

The goal of this study is to analyse the relationship between financial integration and economics growth with quarterly data from 1994/4 to 2017/1. The results from 2-stage estimates of Engle-Granger cointegration test show no common trend between the variables. However, the estimates from nonlinear cointegration tests those include changes in intercept and trend based on the characteristics of the estimated residuals, reveal that there is a long-run relationship between the index relating direct investment and economic growth. The results of this empirical analysis have two following implications. First, the relationship between financial integration relating direct investment and economic growth is statistically significant and the effect is positive. Second, it is necessary to consider the nonlinear frameworks for an analysis of the relationship between financial integration and economics growth.