Diagonal cumulation of origin as the EU’s institutional incentive mechanism for promoting international trade and business

Autor: Romana Korez Vide, Klavdij Logožar, Milan Jurše
Jazyk: German<br />English<br />French<br />Italian
Rok vydání: 2010
Předmět:
Zdroj: Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu, Vol 28, Iss 2, Pp 221-250 (2010)
Druh dokumentu: article
ISSN: 1331-8004
Popis: In this paper we explore the effects of a diagonal cumulation of origin as the EU’s Common Commercial Policy (CCP) incentive mechanism that affects the intraregional trade and transaction cost structure of firms engaged in cross-border business operation. The research explores how firms should frame their crossborder physical flows of goods and the configuration of their value-adding processes for taking advantage of diagonal cumulation of origin. The empirical analysis is based on an in-depth case study of effects of the ‘SAP+ diagonal cumulation of origin’ on changes in the transaction cost structure of a selected Slovenian firm operating within the household-appliance sector in one of the Western Balkan Countries. Based on eligibility of local subsidiary for using origin of goods in its import/export transactions the cost calculations were made for its products and then three different business scenarios were developed for showing the effects of the mechanism on transaction cost changes of a firm. The paper concludes that, at the conceptual level, the mechanism of diagonal cumulation oforigin may serve as an effective institutional cross-border trade-promoting tool
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