Found 8 article(s) for author 'C. Fritz Foley'

Trump Hopes To Lure Companies Back To The U.S. With Lower Tax Rates

Trump Hopes To Lure Companies Back To The U.S. With Lower Tax Rates. C. Fritz Foley, May 29, 2017, Audio, “A key part of President Trump’s tax plan is to repatriate corporate profits held overseas back to the U.S. With the lure of lower corporate rates, the idea is that companies will free up overseas earnings and instead invest in jobs and equipment in the U.S. A similar scheme was tried during the administration of George W. Bush, but companies used most of the money on stock buybacks or to pay dividends to shareholders.Link

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Poultry in Motion: A Study of International Trade Finance Practices

Poultry in Motion: A Study of International Trade Finance Practices. Pol Antras, C. Fritz Foley, August 2015, Paper, “This paper theoretically and empirically analyzes the financing terms that support international trade. The choice of trade finance terms balances the risk that an importer defaults on an exporter and the possibility that an exporter does not deliver goods as specified. Analysis of transaction-level data from a US exporter reveals that importers located in countries with weak enforcement of contracts typically finance transactions, but these firms are able to overcome the constraints of such environments if they can establish a relationship with the exporter. Furthermore, the manner in which trade is financed shapes the impact of crises.”  Link

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International Trade, Multinational Activity, and Corporate Finance

International Trade, Multinational Activity, and Corporate Finance. C. Fritz Foley, October 2014, Paper, “Recent research brings unique insights from corporate finance to the study of international trade and investment. Insights about differences in the development of financial institutions across countries, the role of financial constraints, and the use of internal capital markets are proving to be central in understanding international economics. The ability to access financial capital to pay fixed and variable costs affects the choices firms make regarding trade on the intensive and extensive margins, and, as a consequence, influence aggregate trade patterns…” Link

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Poultry in Motion: A Study of International Trade Finance Practices

Poultry in Motion: A Study of International Trade Finance Practices. Pol Antras, C. Fritz Foley, May 2014, Paper. “This paper analyzes the financing terms that support international trade and sheds light on how these terms shape the impact of economic shocks on trade. Analysis of transaction-level data from a U.S.-based exporter of frozen and refrigerated food products, primarily poultry, reveals broad patterns about the use of alternative financing terms. These patterns help discipline a model in which the choice of trade finance terms is shaped by the risk that an importer defaults on an exporter…” Link verified August 21, 2014

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Trade Credit and Taxes

Trade Credit and Taxes. Mihir Desai, C. Fritz Foley, May 2012, Paper. “This paper analyzes the extent to which tax differences affect the use of trade credit. U.S.-owned affiliates in low-tax countries use trade credit to lend, whereas those in high-tax countries use trade credit to borrow: 10% lower local tax rates are associated with net trade credit positions that are 1.4% higher as a fraction of sales. The use of trade credit to get capital out of low-tax, low-return environments is also illustrated by the temporary repatriation tax holiday in 2005, which was used most intensively by affiliates with positive net trade credit positions.Link

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Regional Trade Integration and Multinational Firm Strategies

Regional Trade Integration and Multinational Firm Strategies. Pol Antras, C. Fritz Foley, April 2009, Book Chapter. “This paper analyzes the effects of the formation of a regional trade agreement on the level and nature of multinational firm activity. We examine aggregate data that captures the response of U.S. multinational firms to the formation of the ASEAN free trade agreement. Observed patterns guide the development of a model in which heterogeneous firms from a source country decide how to serve two foreign markets. Following a reduction in tariffs on trade between the two foreign countries, the model predicts growth in the number of…” Link

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Financial Constraints and Growth: Multinational and Local Firm Responses to Currency Crises

Financial Constraints and Growth: Multinational and Local Firm Responses to Currency Crises. Mihir A. Desai, C. Fritz Foley, November 2008. “This paper examines how financial constraints and product market exposures determine the response of multinational and local firms to sharp depreciations. U.S. multinational affiliates increase sales, assets, and investment significantly more than local firms during, and subsequent to, depreciations. Differing product market exposures do not explain these differences in performance. Instead, a differential ability to circumvent financial constraints is a significant determinant…” Link

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Facts and Fallacies about U.S. FDI in China

Facts and Fallacies about U.S. FDI in China. C. Fritz Foley, August 16, 2007, Book Chapter. “Despite the rapid expansion of U.S.-China trade ties, the increase in U.S. FDI in China, and the expanding amount of economic research exploring these developments, a number of misconceptions distort the popular understanding of U.S. multinationals in China. In this paper, we seek to correct four common misunderstandings by providing a statistical portrait of several aspects of U.S. affiliate activity in the country and placing this activity in its appropriate economic context.” Link

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