Diagonal cumulation of origin as the EU's institutional incentive mechanism for promoting international trade and business *
Year: 2010
Type: report
Abstract: 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
Institution: University of Maribor
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2137514826