%0 Journal Article
%T Diagonal cumulation of origin as the EU¡¯s institutional incentive mechanism for promoting international trade and business
%A Milan Jur£¿e
%A Klavdij Logo£¿ar
%A Romana Korez Vide
%J Zbornik Radova Ekonomskog Fakulteta u Rijeci : £¿asopis za Ekonomsku Teoriju i Praksu
%D 2010
%I University of Rijeka
%X 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
%K International business
%K Institutional incentive mechanism
%K Diagonal cumulation of origin
%K European Union
%K Transaction costs
%K Western Balkan Countries
%U https://www.efri.hr/sites/efri.hr/files/cr-collections/2/05_korez_2010_2.pdf