Pub Date : 2020-07-02DOI: 10.1080/10599231.2020.1783972
A. Al mamun, Noorshella Binti Che Nawi, N. Nasir, Syed Ali Fazal
ABSTRACT This study focuses on the factors (i.e., social influence, performance expectancy, perceived trust, perceived risk, perceived enjoyment, and effort expectancy) contributing to the depth of social-media adoption as a business platform and its effect on consumer engagement among student entrepreneurs in Malaysia under the premise of the Unified Theory of Acceptance and Use of Technology (UTAUT). The findings of this study reveal that performance expectancy, perceived risk, perceived trust, and perceived enjoyment significantly affect the depth of social-media adoption, which in turn significantly affects consumer engagement.
{"title":"Social Media and Consumer Engagement: The Case of Malaysian Student Entrepreneurs","authors":"A. Al mamun, Noorshella Binti Che Nawi, N. Nasir, Syed Ali Fazal","doi":"10.1080/10599231.2020.1783972","DOIUrl":"https://doi.org/10.1080/10599231.2020.1783972","url":null,"abstract":"ABSTRACT This study focuses on the factors (i.e., social influence, performance expectancy, perceived trust, perceived risk, perceived enjoyment, and effort expectancy) contributing to the depth of social-media adoption as a business platform and its effect on consumer engagement among student entrepreneurs in Malaysia under the premise of the Unified Theory of Acceptance and Use of Technology (UTAUT). The findings of this study reveal that performance expectancy, perceived risk, perceived trust, and perceived enjoyment significantly affect the depth of social-media adoption, which in turn significantly affects consumer engagement.","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"21 1","pages":"185 - 206"},"PeriodicalIF":0.0,"publicationDate":"2020-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10599231.2020.1783972","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45752851","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-07-02DOI: 10.1080/10599231.2020.1783971
R. Joshi, Rajan Yadav
ABSTRACT The purpose of the present research is to recommend & empirically validate the scale for brand desire and to understand its role in shaping purchase intention in a developing Asian country. A three-item scale for brand desire was validated through the utilization of focus group technique, exploratory factor analysis, and Lawse content validity ratio. Additionally, Brand “love-desire” framework is also proposed and empirically tested along with the testing of a possible alternative model which could emerge from the existing constructs.
{"title":"Brand Desire: Scale Development and Empirical Examination","authors":"R. Joshi, Rajan Yadav","doi":"10.1080/10599231.2020.1783971","DOIUrl":"https://doi.org/10.1080/10599231.2020.1783971","url":null,"abstract":"ABSTRACT The purpose of the present research is to recommend & empirically validate the scale for brand desire and to understand its role in shaping purchase intention in a developing Asian country. A three-item scale for brand desire was validated through the utilization of focus group technique, exploratory factor analysis, and Lawse content validity ratio. Additionally, Brand “love-desire” framework is also proposed and empirically tested along with the testing of a possible alternative model which could emerge from the existing constructs.","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"21 1","pages":"169 - 184"},"PeriodicalIF":0.0,"publicationDate":"2020-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10599231.2020.1783971","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46758765","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-07-02DOI: 10.1080/10599231.2020.1783983
Birajit Mohanty, Sankersan Sarkar
ABSTRACT Owing to increased banking regulation and competition, banks are facing challenges to maintain their profitability. This article studies the affect on profitability of banks’ internal factors and external economic factors. The evidence shows that liquidity risk has a significant negative affect on profitability of the PSU banks. Also operational risk and capital efficiency have a significant negative impact on profitability. Return on assets, bank size, and economic growth rate are found to influence profitability negatively; only the affect of the former was statistically significant. Increase in nonperforming assets adversely affects profitability.
{"title":"Impact of Bank-Specific and External Factors on Profitability: An Empirical Study of PSU Banks in India","authors":"Birajit Mohanty, Sankersan Sarkar","doi":"10.1080/10599231.2020.1783983","DOIUrl":"https://doi.org/10.1080/10599231.2020.1783983","url":null,"abstract":"ABSTRACT Owing to increased banking regulation and competition, banks are facing challenges to maintain their profitability. This article studies the affect on profitability of banks’ internal factors and external economic factors. The evidence shows that liquidity risk has a significant negative affect on profitability of the PSU banks. Also operational risk and capital efficiency have a significant negative impact on profitability. Return on assets, bank size, and economic growth rate are found to influence profitability negatively; only the affect of the former was statistically significant. Increase in nonperforming assets adversely affects profitability.","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"21 1","pages":"227 - 242"},"PeriodicalIF":0.0,"publicationDate":"2020-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10599231.2020.1783983","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46204977","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-29DOI: 10.1080/10599231.2020.1783970
R. Ajami
The global economy is facing an unprecedented healthcare crisis as well as an economic crisis. GDP growth rates, trade flows, cross-border investments, and supply chains are negatively impacted. According to Johns Hopkins University, at the date of this writing, the COVID-19 healthcare impact has swept across the planet, has nearly impacted over 7 million people, and has resulted in the death of more than 480,000 individuals. The economies of China and the US have certainly contracted, and the available data, while tentative, shows significant contraction in the Chinese economy as well as other Asian economies, such as India. The two leading economies, the United States and China, number one and number two, respectively, will have significant contractions and a slowdown. While the US government provided a significant stimulus package, exceeding 3 trillion dollars, and is likely to add more, the Chinese government is reluctant to provide a significant stimulus package that will be large enough to return the Chinese economy to a semblance of normality. The recent debt burden of the Chinese government, estimated at 1 trillion dollars, arising from its belt and road transcontinental initiative, is significant. Moreover, the economic impact on the slowdown in China is likely to also severely affect small and medium-sized enterprises. Small and medium-sized enterprises account for over 65% of China’s output, and the funding of these small and medium-sized enterprises is not always on solid ground. The Chinese economy is likely to be in a slowdown that could last beyond the next two years. The Chinese economy contracted significantly with over 70,000 firms closing their doors and sending their workers home. This is the first significant Chinese contraction since the late 1970s. JP Morgan has also indicated that the US economy is contracting significantly during the second quarter of 2020, and this contraction may continue throughout 2021. Unemployment in the US is as high as 13 to 16%. The Coronavirus pandemic is both an economic crisis and a healthcare crisis. The global economy is likely to shrink in 2020, and various estimates range; however, a 6 percent decline in the global economy is highly likely. The US economy and the Asia-Pacific economy will have a reduction in employment, and the unemployment numbers for the US are likely to be as high as 13.6 to 16%. Youth unemployment is likely to increase significantly across Organization for Economic Cooperation and Development (OECD) economies, Asia-Pacific economies, and emerging economies. The slowdown and JOURNAL OF ASIA-PACIFIC BUSINESS 2020, VOL. 21, NO. 3, 165–168 https://doi.org/10.1080/10599231.2020.1783970
{"title":"Economic Challenges and Adjustments for the Asia-Pacific Region: COVID-19 and Beyond","authors":"R. Ajami","doi":"10.1080/10599231.2020.1783970","DOIUrl":"https://doi.org/10.1080/10599231.2020.1783970","url":null,"abstract":"The global economy is facing an unprecedented healthcare crisis as well as an economic crisis. GDP growth rates, trade flows, cross-border investments, and supply chains are negatively impacted. According to Johns Hopkins University, at the date of this writing, the COVID-19 healthcare impact has swept across the planet, has nearly impacted over 7 million people, and has resulted in the death of more than 480,000 individuals. The economies of China and the US have certainly contracted, and the available data, while tentative, shows significant contraction in the Chinese economy as well as other Asian economies, such as India. The two leading economies, the United States and China, number one and number two, respectively, will have significant contractions and a slowdown. While the US government provided a significant stimulus package, exceeding 3 trillion dollars, and is likely to add more, the Chinese government is reluctant to provide a significant stimulus package that will be large enough to return the Chinese economy to a semblance of normality. The recent debt burden of the Chinese government, estimated at 1 trillion dollars, arising from its belt and road transcontinental initiative, is significant. Moreover, the economic impact on the slowdown in China is likely to also severely affect small and medium-sized enterprises. Small and medium-sized enterprises account for over 65% of China’s output, and the funding of these small and medium-sized enterprises is not always on solid ground. The Chinese economy is likely to be in a slowdown that could last beyond the next two years. The Chinese economy contracted significantly with over 70,000 firms closing their doors and sending their workers home. This is the first significant Chinese contraction since the late 1970s. JP Morgan has also indicated that the US economy is contracting significantly during the second quarter of 2020, and this contraction may continue throughout 2021. Unemployment in the US is as high as 13 to 16%. The Coronavirus pandemic is both an economic crisis and a healthcare crisis. The global economy is likely to shrink in 2020, and various estimates range; however, a 6 percent decline in the global economy is highly likely. The US economy and the Asia-Pacific economy will have a reduction in employment, and the unemployment numbers for the US are likely to be as high as 13.6 to 16%. Youth unemployment is likely to increase significantly across Organization for Economic Cooperation and Development (OECD) economies, Asia-Pacific economies, and emerging economies. The slowdown and JOURNAL OF ASIA-PACIFIC BUSINESS 2020, VOL. 21, NO. 3, 165–168 https://doi.org/10.1080/10599231.2020.1783970","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"21 1","pages":"165 - 168"},"PeriodicalIF":0.0,"publicationDate":"2020-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10599231.2020.1783970","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47549035","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-06-29DOI: 10.1080/10599231.2020.1783974
R. Sachdeva
ABSTRACT The purpose of this research effort is to examine the factors influencing young Indian consumer decision making. Present research considers consumer decision making as a conscious and deliberate process, influenced the most by exposure, information processing, and advertising effectiveness. There is a greater need to study these factors in a country like India, which has the world’s largest youth population and also is an emerging economy. This study identifies a positive relationship between exposure and information processing with consumer decision making. The research effort depicts that advertising effectiveness to a great extent influences consumer decision making and has a positive relationship with information processing.
{"title":"An Empirical Investigation of Factors Influencing Young Indian Consumer Decision Making","authors":"R. Sachdeva","doi":"10.1080/10599231.2020.1783974","DOIUrl":"https://doi.org/10.1080/10599231.2020.1783974","url":null,"abstract":"ABSTRACT The purpose of this research effort is to examine the factors influencing young Indian consumer decision making. Present research considers consumer decision making as a conscious and deliberate process, influenced the most by exposure, information processing, and advertising effectiveness. There is a greater need to study these factors in a country like India, which has the world’s largest youth population and also is an emerging economy. This study identifies a positive relationship between exposure and information processing with consumer decision making. The research effort depicts that advertising effectiveness to a great extent influences consumer decision making and has a positive relationship with information processing.","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"21 1","pages":"207 - 226"},"PeriodicalIF":0.0,"publicationDate":"2020-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10599231.2020.1783974","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48161463","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-04-02DOI: 10.1080/10599231.2020.1745047
Bibhuti Ranjan Mishra, A. Pradhan, A. Tiwari, Aruna Kumar Dash, M. Aruna
ABSTRACT We examine the connectedness among the series of four exchange rates with respect to the Indian Rupee. The results of Diebold and Yilmaz method which measures time-domain connectedness, show that the overall connectedness of the system is 30.15%. The results of Baruník and Křehlík approach which measures frequency-domain connectedness, exhibit that in the total connectedness the maximum contribution is from highest frequency (14.27%) and the lowest contribution is made by the second-lowest frequency (2.03%). Finally, the dynamic connectedness is also examined with rolling window methods. These results are very critical in understanding the connectedness among various exchange rate markets.
{"title":"Exchange Rate Return and Volatility Spillover across Major Trading Partners of India","authors":"Bibhuti Ranjan Mishra, A. Pradhan, A. Tiwari, Aruna Kumar Dash, M. Aruna","doi":"10.1080/10599231.2020.1745047","DOIUrl":"https://doi.org/10.1080/10599231.2020.1745047","url":null,"abstract":"ABSTRACT We examine the connectedness among the series of four exchange rates with respect to the Indian Rupee. The results of Diebold and Yilmaz method which measures time-domain connectedness, show that the overall connectedness of the system is 30.15%. The results of Baruník and Křehlík approach which measures frequency-domain connectedness, exhibit that in the total connectedness the maximum contribution is from highest frequency (14.27%) and the lowest contribution is made by the second-lowest frequency (2.03%). Finally, the dynamic connectedness is also examined with rolling window methods. These results are very critical in understanding the connectedness among various exchange rate markets.","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"21 1","pages":"101 - 80"},"PeriodicalIF":0.0,"publicationDate":"2020-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10599231.2020.1745047","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48936714","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-04-02DOI: 10.1080/10599231.2020.1745050
S. Lenka, Ruchi Sharma
ABSTRACT Financial development is a multidimensional process. Over the years with the invention of various new products and services, the financial sector (both financial institutions and financial markets) across the globe has significantly evolved. The endeavor in this article is to investigate the relationship between financial development and economic growth in India for the period 1980–2017. To do so, it employs principal component analysis (PCA) to construct a financial development index, which measures the financial depth of the Indian economy. Using the autoregressive distributed lag (ARDL) and error correction model (ECM), the study estimates a positive effect of financial development on economic growth in the long run and the short run, respectively. In addition, the empirical estimates posit a bidirectional relationship between financial development and economic growth. The uniqueness of this study lies in that it unravels a unidirectional relationship between the stock market and economic growth. The study, however, finds that appropriate liberalization policies spur economic growth in India.
{"title":"Re-examining the Effect of Financial Development on Economic Growth in India: Does the Measurement of Financial Development Matter?","authors":"S. Lenka, Ruchi Sharma","doi":"10.1080/10599231.2020.1745050","DOIUrl":"https://doi.org/10.1080/10599231.2020.1745050","url":null,"abstract":"ABSTRACT Financial development is a multidimensional process. Over the years with the invention of various new products and services, the financial sector (both financial institutions and financial markets) across the globe has significantly evolved. The endeavor in this article is to investigate the relationship between financial development and economic growth in India for the period 1980–2017. To do so, it employs principal component analysis (PCA) to construct a financial development index, which measures the financial depth of the Indian economy. Using the autoregressive distributed lag (ARDL) and error correction model (ECM), the study estimates a positive effect of financial development on economic growth in the long run and the short run, respectively. In addition, the empirical estimates posit a bidirectional relationship between financial development and economic growth. The uniqueness of this study lies in that it unravels a unidirectional relationship between the stock market and economic growth. The study, however, finds that appropriate liberalization policies spur economic growth in India.","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"21 1","pages":"124 - 142"},"PeriodicalIF":0.0,"publicationDate":"2020-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10599231.2020.1745050","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46155755","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-04-02DOI: 10.1080/10599231.2020.1745049
A. Bhatia, Gurpreet Kaur
ABSTRACT The current study examines the extent and pattern of growth of the Indian corporate sector between 2005 and 2017. This period comprises a prerecessionary, recessionary, postrecessionary, and recent subperiod. A sample of 355 companies is classified into 16 industries as per National Industrial Classification code. We computed compound annual growth rate using net sales as the growth measure. Statistically, the prerecessionary period reported maximum growth relative to the other subperiods. The categories Food and Beverages, Textile and Tourism, and Other Support Services showed robust growth; whereas, Metals, Machinery and Equipment and Mining and Refining showed less growth.
{"title":"De-escalation in the Progression of Trillion Dollar Economy: An Empirical Assessment of Indian Corporate Sector","authors":"A. Bhatia, Gurpreet Kaur","doi":"10.1080/10599231.2020.1745049","DOIUrl":"https://doi.org/10.1080/10599231.2020.1745049","url":null,"abstract":"ABSTRACT The current study examines the extent and pattern of growth of the Indian corporate sector between 2005 and 2017. This period comprises a prerecessionary, recessionary, postrecessionary, and recent subperiod. A sample of 355 companies is classified into 16 industries as per National Industrial Classification code. We computed compound annual growth rate using net sales as the growth measure. Statistically, the prerecessionary period reported maximum growth relative to the other subperiods. The categories Food and Beverages, Textile and Tourism, and Other Support Services showed robust growth; whereas, Metals, Machinery and Equipment and Mining and Refining showed less growth.","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"21 1","pages":"102 - 123"},"PeriodicalIF":0.0,"publicationDate":"2020-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10599231.2020.1745049","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48123850","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-03-25DOI: 10.1080/10599231.2020.1745046
R. Ajami
The world population, approaching eight billion inhabitants, has seen some of the advantages as well as the challenges and disadvantages of a multilateral, global economy. Following World War II, under the leadership and hegemony of the United States, there was an emphasis on opening within a global multinational system, whereby, free markets, democratic privatization, and the free flow of technology and innovation would get us to a global society where opportunities would allow for the economic betterment of most inhabitants of planet Earth and the global village that we now live in. The engines of this multinational and multilateral political economy were companies with familiar names listed on the global Fortune 500. Among the global Fortune 500 firms, US-based companies, such as GM, GE, Exxon, and others were dominant. The Organization of Economic Cooperation and Development (OECD)-based multinationals were, by far, the source of technology and innovations. Fast forward to 2020, Fortune’s list of global firms still continues to have OECD firms, but we are starting to see the arrival of Chinese, Indian, and other non-OECD firms. Multinational firms, assets, and capabilities now are in OECD countries and other emerging economies in this global market, equally. Global supply chains now are dominant throughout the global economy, and their assets and capabilities are reflective of multinational firms coming from emerging economies, as well as OECD-based firms. The COVID-19 outbreak in China placed millions of people in quarantine and idled factories, impacting Chinese workers and the global supply chains that depend on China as the factory of this planet. Moreover, the pandemic restricted internal Chinese transportation networks, as well as stopped the flow of Chinese tourists to the rest of the world. The curtailment of economic activities in China also impacted the global oil market. China is a major oil producer and it is the lynchpin of oil demand on this planet. Importing an estimated 10mbd out of 98 million barrels daily of total oil production reduced significantly the demand for crude oil and sent oil prices to their lowest level in three decades. Today, oil prices for West Texas Intermediate and Brent are in the range of 33 to 36 dollars/barrel. There are estimates that oil prices could slide further to a range of 20 USD/barrel. The reduction in oil prices will impact the Middle Eastern oil producers’ ability to continue to import goods and services and will affect the social programs internally, whereby, the Arabian Gulf population always looks to their governments for subsidies of all sorts, particularly in education and healthcare. Moreover, government budgets of the Arab oil-producing states within OPEC were predicated on an assumption that oil prices will stay in the range of 50 USD/barrel. The initial attempt by the Saudi government to reduce oil production of all the OPEC members along with Russia did not materialize. Thus, the Sa
{"title":"Globalization, the Challenge of COVID-19 and Oil Price Uncertainty","authors":"R. Ajami","doi":"10.1080/10599231.2020.1745046","DOIUrl":"https://doi.org/10.1080/10599231.2020.1745046","url":null,"abstract":"The world population, approaching eight billion inhabitants, has seen some of the advantages as well as the challenges and disadvantages of a multilateral, global economy. Following World War II, under the leadership and hegemony of the United States, there was an emphasis on opening within a global multinational system, whereby, free markets, democratic privatization, and the free flow of technology and innovation would get us to a global society where opportunities would allow for the economic betterment of most inhabitants of planet Earth and the global village that we now live in. The engines of this multinational and multilateral political economy were companies with familiar names listed on the global Fortune 500. Among the global Fortune 500 firms, US-based companies, such as GM, GE, Exxon, and others were dominant. The Organization of Economic Cooperation and Development (OECD)-based multinationals were, by far, the source of technology and innovations. Fast forward to 2020, Fortune’s list of global firms still continues to have OECD firms, but we are starting to see the arrival of Chinese, Indian, and other non-OECD firms. Multinational firms, assets, and capabilities now are in OECD countries and other emerging economies in this global market, equally. Global supply chains now are dominant throughout the global economy, and their assets and capabilities are reflective of multinational firms coming from emerging economies, as well as OECD-based firms. The COVID-19 outbreak in China placed millions of people in quarantine and idled factories, impacting Chinese workers and the global supply chains that depend on China as the factory of this planet. Moreover, the pandemic restricted internal Chinese transportation networks, as well as stopped the flow of Chinese tourists to the rest of the world. The curtailment of economic activities in China also impacted the global oil market. China is a major oil producer and it is the lynchpin of oil demand on this planet. Importing an estimated 10mbd out of 98 million barrels daily of total oil production reduced significantly the demand for crude oil and sent oil prices to their lowest level in three decades. Today, oil prices for West Texas Intermediate and Brent are in the range of 33 to 36 dollars/barrel. There are estimates that oil prices could slide further to a range of 20 USD/barrel. The reduction in oil prices will impact the Middle Eastern oil producers’ ability to continue to import goods and services and will affect the social programs internally, whereby, the Arabian Gulf population always looks to their governments for subsidies of all sorts, particularly in education and healthcare. Moreover, government budgets of the Arab oil-producing states within OPEC were predicated on an assumption that oil prices will stay in the range of 50 USD/barrel. The initial attempt by the Saudi government to reduce oil production of all the OPEC members along with Russia did not materialize. Thus, the Sa","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"21 1","pages":"77 - 79"},"PeriodicalIF":0.0,"publicationDate":"2020-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10599231.2020.1745046","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49550315","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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