U.S.-E.E.C. trade in kraft linerboard ; a study of current and future U.S. exports and marketing practices Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/7m01bq957

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  • This study attempts to show that competitive advantage alone does not determine the directions of trade in kraft liner. Trade depends on comparative advantage and especially on familiarity with foreign demand. Implications from international trade theories guided this study of trade in kraft liner. Future demand in the E.E.C. for foreign kraft liner was deduced from estimates of corrugated production related to a basic economic indicator in each member country. The competitive advantage of each supplying area-- British Columbia, Eastern Canada, Sweden, Finland and the Southern United States-- was obtained by analyzing production and transportation costs to the E.E.C. The competitive advantage of each supplying area-- defined as the difference between the CIF price and total cost (production plus transportation costs) -- was calculated in order to see if it explained fully past and actual directions of trade. As the U.S. domestic market represents an alternative to export, the possible influence of domestic trade on export was also considered. Marketing efforts developed in the E.E.C. by U.S. firms were used to explain discrepancies between actual trade and that indicated by competitive advantage. A survey of U.S. firms' export marketing practices in the E.E.C. showed that the channel of distribution and product differentiation were important factors in determining trade. The relation between probability, of repeated exports (export loyalty) and sales abroad of U.S. subsidiaries in the pulp and paper industry were shown by use of a Markov chain process. This model was then used to determine the E.E.C.'s future share of U.S. exports of kraft liner. A regression model was developed to formulate relevant economic relationships so as to predict the future level of U.S. exports of kraft liner to the E.E.C. Finally, implications were drawn concerning techniques of export prediction and an appropriate marketing strategy for a potential exporter.
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