Abstract:Based on the proposed 'PIE' analytical framework, this paper argues that the preparation, implementation and evaluation of international standards (ISOs) affect the competitiveness of (foreign-financed) export-oriented manufacturing industry in southern and south-eastern China, both in the shortand long-term. During the period of preparation, the decision to adopt ISOs is mainly driven by market demand and/or by the decisions of established competitors. Negative effects due to the diversion of scarce resources and institutional resistance to change during the period of transitional implementation are offset by the overall enhancement of the firm's productivity in the long-run. 'Tailoring for the external audit' and 'secondbest' practices are two strategies commonly employed by Chinese firms to lower the transaction costs involved in ISO audits.

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Abstract:Based on field surveys conducted in Guangdong, Zhejiang

We examine how constraints on transnational corporations' official distribution channels, asset specificity, and bounded rationality of franchise dealers and parallel traders contribute to the sustainability of the parallel importation of automobiles. The manufacturing and distribution strategies employed by transnational corporations considerably add to the regional differences in the pricing and availability of specific models, as well as vehicle specifications. These necessary conditions enable opportunistic parallel traders to engage in arbitrage. The asset specificity of franchise dealers, bounded rationality, and opportunism of dealers and arbitrageurs sustain the parallel importation of automobiles.