U.S exporter has certain selections to make when it comes to determining in which markets to sell their businesses' products and services. These selections depend on several factors, including cost sensitivity, income levels, market size, competition, consumer preferences, and other demand conditions in the receiver marketplaces. Cost factors also play an essential role in determining to which markets companies export, particularly those associated with tariff transfer and non-tariff barriers to translations, legal and commerce services, and logistics support for distribution and supply channels that are vertically integrated. But, the inclusion of intellectual property rights (IPR) considerations hasn't been built-in to the well-established literature on firms' export determinants.
Using a comparative index of IPR protection measures in several states; this informative article isolates the effects of IPR protection as a determinant to U.S. export action. The outcomes elucidate that increase in U.S. exports has been correlated with improvements in IPR protection in foreign markets over the considered period and that the magnitude of this correlation has changed markedly by sector and state. High technology sectors, including semiconductors along with the synthetic rubbers and fibers, demonstrated the best susceptibility to improvements in IPR protection mechanisms in the considered interval while advancements in IPR protection in markets like Mexico, China, and Japan were correlated with disproportionately high positive effects on U.S. export performance.
PUBLICATION DATE: March 15, 2013 PRODUCT #: BH519-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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