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How did Cuba's long-established sugar trade result in the development of an agriculture that benefited consumers abroad at the dire expense of Cubans at home? In this history of Cuba, Louis A. Perez proposes a new Cuban counterpoint: rice, a staple central to the island's cuisine, and sugar, which dominated an export economy 150 years in the making. In the dynamic between the two, dependency on food imports-a signal feature of the Cuban economy-was set in place.Cuban efforts to diversify the economy through expanded rice production were met with keen resistance by U.S. rice producers, who were as reliant on the Cuban market as sugar growers were on the U.S. market. U.S. growers prepared to retaliate by cutting the sugar quota in a struggle to control Cuban rice markets. Perez's chronicle culminates in the 1950s, a period of deepening revolutionary tensions on the island, as U.S. rice producers and their allies in Congress clashed with Cuban producers supported by the government of Fulgencio Batista. U.S. interests prevailed-a success, Perez argues, that contributed to undermining Batista's capacity to govern. Cuba's inability to develop self-sufficiency in rice production persists long after the triumph of the Cuban revolution. Cuba continues to import rice, but, in the face of the U.S. embargo, mainly from Asia. U.S. rice growers wait impatiently to recover the Cuban market.

Motivated by the proliferation of online platforms that collect and disseminate consumers’ experiences with alternative substitutable products/services, we investigate the problem of optimal information provision when the goal is to maximize aggregate consumer surplus. We develop a decentralized multiarmed bandit framework where a forward-looking principal (the platform designer) commits up front to a policy that dynamically discloses information regarding the history of outcomes to a series of short-lived rational agents (the consumers). We demonstrate that consumer surplus is nonmonotone in the accuracy of the designer’s information-provision policy. Because consumers are constantly in “exploitation” mode, policies that disclose accurate information on past outcomes suffer from inadequate “exploration.” We illustrate how the designer can (partially) alleviate this inefficiency by employing a policy that strategically obfuscates the information in the platform’s possession; interestingly, such a policy is beneficial despite the fact that consumers are aware of both the designer’s objective and the precise way by which information is being disclosed to them. More generally, we show that the optimal information-provision policy can be obtained as the solution of a large-scale linear program. Noting that such a solution is typically intractable, we use our structural findings to design an intuitive heuristic that underscores the value of information obfuscation in decentralized learning. We further highlight that obfuscation remains beneficial even if the designer can directly incentivize consumers to explore through monetary payments. This paper was accepted by Serguei Netessine, operations management.

China's economic growth is sputtering, the Euro is under threat, and the United States is combating serious trade disadvantages. Another Great Depression? Not quite. Noted economist and China expert Michael Pettis argues instead that we are undergoing a critical rebalancing of the world economies. Debunking popular misconceptions, Pettis shows that severe trade imbalances spurred on the recent financial crisis and were the result of unfortunate policies that distorted the savings and consumption patterns of certain nations. Pettis examines the reasons behind these destabilizing policies, and he predicts severe economic dislocations that will have long-lasting effects. Demonstrating how economic policies can carry negative repercussions the world over,The Great Rebalancingsheds urgent light on our globally linked economic future.

To generate big responses of unemployment to productivity changes, researchers have reconfigured matching models in various ways: by elevating the utility of leisure, by making wages sticky, by assuming alternating-offer wage bargaining, by introducing costly acquisition of credit, by assuming fixed matching costs, or by positing government-mandated unemployment compensation and layoff costs. All of these redesigned matching models increase responses of unemployment to movements in productivity by diminishing the fundamental surplus fraction, an upper bound on the fraction of a job’s output that the invisible hand can allocate to vacancy creation. Business cycles and welfare state dynamics of an entire class of reconfigured matching models all operate through this common channel.

Two interpretations have been advanced to account for persistent German current account surpluses that translate into equally persistent deficits of countries in the European periphery. According to the first, the German surplus is the expression of a 'virtuous' savings behaviour, to be extended to the periphery. The second maintains that the increase in net exports reflects the stagnation of German domestic demand. The paper argues that differences in price competitiveness are only part of the explanation of the disequilibria and that an expansion of German internal demand, albeit necessary, would not suffice to provide a viable response to the long-term sustainability of the euro area. Adopting a multilevel perspective, the paper argues that to understand the persistence of deficits in the European periphery, the main features of the reorganisation of the German economic system, including its income redistribution and demand implications, should be considered. Three elements are singled out: the effects of eastward enlargement, the impoverishment of the productive matrix of peripheral countries and the quality composition of trade flows. This analysis, it is argued, is a crucial premise for devising trade and industrial policies targeted on redressing the increasing skewness of EU trade, especially through greater trade among the deficit countries.

Economic strategies and planning are critical to a country’s growth and development. China, like many other countries, is seeking the most cost-effective trade deals. Using the Global Vector Auto Regression (GVAR) model, this study examined the impact of a shock to China’s macroeconomic factors on trading economies. The major findings reveal that there is no co-movement between the shock in Chinese gross domestic product (GDP) and German macroeconomic indicators; however, the shock has a positive and substantial influence on Japan’s GDP and Unites States (US)’ exchange rate. It is also worth noting that a shock to Chinese trade volume is more susceptible and more disturbing than a shock to US trade volume since it reduces trade volume and causes the Ren Min Bi (RMB) to devalue permanently. Furthermore, the analysis shows that Chinese stock prices have a major influence on German economy since China’s GDP, trade volume, and currency appreciate over time when its stock price rises. Finally, the exchange rate shock is beneficial to Germany as it boosts GDP and trade volume but has a negative influence on US stock prices. The current study is, therefore, expected to be a suitable beginning point for the governments and policymakers of trading partners to design an effective trade policy to minimize the impact on major economic variables.

As the foundation of the industrial economy, the equipment manufacturing industry takes an important position on the China-EU trade. Based on the analysis of the overall trend and structure of China-EU equipment manufacturing industry trade in 2007–2020, this article involves the construction of trade concentration into trade dependence metrics, and then calculate the degree of interdependence between China and EU equipment manufacturing trade in 2020. The perspective of the intra-industry specialization will be used to analyze China-EU equipment manufacturing trade dependency in 2020. The results show that: (1) Although China-EU equipment manufacturing trade has continued to grow, China had an imbalanced export structure to the EU, and electronic equipment exports are too high; (2) Regardless of import or export, the trade dependence of the EU countries on China about equipment manufacturing was higher than that of China on European countries; (3) China mainly depended on the EU about the high-end equipment manufacturing trade, which brings risks to Chinese manufacturing supply chains.

Purpose This paper aims to provide a comprehensive and systematic review of the extant empirical body of knowledge regarding the impact of Guanxi on international Business-to-Business (B-to-B) relationships. Design/methodology/approach After the collection and refinement of studies that appeared in marketing, business and management literature during 1995-2018 period, a systematic review was conducted to discover the current situation and future research directions on the subject. Findings Theoretically, vast majority of the reviewed studies lacked a theoretical foundation, with the remainder anchored primarily on the resource-based view, social network theory and social exchange theory. Methodologically, Ganqing, Xinren and Mianzi are the most frequently investigated dimensions, whereas Renqing is the least investigated dimension. Data are mostly obtained from both Chinese and Western counterparts through survey and analyzed through univariate and multivariate data analysis techniques. Empirically, extant research focused on many diverse outcomes including trust, financial performance, cooperation, satisfaction, time orientation, opportunism and liability of foreignness, while under-examining the drives of Guanxi. Research limitations/implications This study provides a synthesis of extant line of research on the subject that are published in peer-reviewed international journals, which publish research in English. A meta-analysis may be conducted for providing a further detailed framework. Originality/value This study contributes to international marketing literature by providing an in-depth and synthesized inventory of knowledge to scholars; deriving a comprehensive analysis of theoretical foundations, methodological approaches and findings addressed by scholars in the field; noticing theoretical, methodological and empirical gaps to be examined; and providing future research directions.