The American Academy of Business Journal

Vol.  26 * Num. 2  * March 2021

The Library of Congress, Washington, DC  ISSN: 1540–7780

Online Computer Library Center * OCLC: 805078765

National Library of Australia * NLA: 42709473

The Cambridge Social Science Citation Index, CSSCI

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The primary goal of the journal will be to provide opportunities for business related academicians and professionals from various business related fields in a global realm to publish their paper in one source. The Journal will bring together academicians and professionals from all areas related business fields and related fields to interact with members inside and outside their own particular disciplines. The journal will provide opportunities for publishing researcher's paper as well as providing opportunities to view other's work. All submissions are subject to a double blind peer review process.  The Journal is a refereed academic journal which  publishes the  scientific research findings in its field with the ISSN 1540-7780 issued by the Library of Congress, Washington, DC.  The journal will meet the quality and integrity requirements of applicable accreditation agencies (AACSB, regional) and journal evaluation organizations to insure our publications provide our authors publication venues that are recognized by their institutions for academic advancement and academically qualified statue.  No Manuscript Will Be Accepted Without the Required Format.  All Manuscripts Should Be Professionally Proofread Before the Submission.  You can use www.editavenue.com for professional proofreading / editing etc...The journal submission guideline can be seen at: submission guideline

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The hard copies of the journal, Vol. 26, Num. 2, March 2021,  will be mailed to each registered authors in January 2021.

 

 

Strategic Implications of Governmental Policy Initiatives on the Electrical Vehicle Industry in China

Dr. Kathryn J. Ready, Winona State University, Winona, MN

 

ABSTRACT

China leads in the world's electric vehicle (EV) market and is expected to continue its dominance in this industry in the foreseeable future. By the end of 2019, approximately half of the EVs and 99% of EV buses were in China (IEA, 2019), and the EV market is projected to continue to increase, growing five-fold from 2019 to 2026 (Wagner, 2020a). The growth of the EV industry has been supported by governmental strategies and global efforts to reduce global warming by mitigating carbon emissions through initiatives such as the Paris Climate Agreement. This environmental accord was supported by a multi-governmental Electric Vehicle Initiative in 2017, which promoted the adoption of EVs worldwide. This initiative united countries in working toward a goal of EVs representing 30% of vehicle sales by 2030 and supporting the related development of improving charging infrastructure (IEA, 2020). As one of the signatories to the EV Initiative, China's industrial policy and governmental initiatives promote technological innovation and clean energy, which are driving forces in the continued development of the EV industry. This paper examines China's governmental policy initiatives that have strategic implications for the continued growth and development of the EV industry in China. As countries worldwide are working to reduce environmental damage and global warming, industries that are harming the environment through carbon emissions have been targeted both within countries and through worldwide environmental accords, such as the Paris Climate Agreement. Emissions from the transportation sector are a significant contributor to the growing climate change problem; this sector is responsible for 14% of global emissions, and emissions are expected to increase (Wang, 2019). Due to the damage caused by fossil fuels and carbon dioxide emissions, countries are adopting strategies such as supporting low emission alternative energy options for transport vehicles and moving toward zero-emission vehicles. As a signatory to the Paris Agreement, China is collaboratively working with other countries and has called for a target of peaking emissions before 2030; China’s involvement is significant as it leads the world in carbon dioxide emissions. This target date was established in the multi-governmental Electric Vehicle Initiative in 2017, an agreement of fifteen countries seeking to increase electric vehicles' sales and further develop charging infrastructure to reduce global warming. China’s participation in the Paris Agreement is critical due to its heavy dependence on coal in developing its infrastructure and manufacturing base and its growing number of transport vehicles, contributing to carbon emissions. China represents the world’s largest market for automobile sales. In 2019, 25.8 million vehicles were sold, based on new car registrations, representing more than 25% of the world’s automobile sales (Wagner, 2020e). Foreign manufacturers dominate the auto market, and while the number of Chinese manufacturers has been increasing, they still represented only 40% of passenger vehicles sold in China (Wong, 2020). In 2019, Volkswagen was the world’s leading auto and truck manufacturer, but Tesla led in EV sales (Wagner, 2020d). Electrical vehicle sales are expanding rapidly, growing to more than two million units globally in 2019, and accounted for 2.6% of global car sales (IEA, 2020). Of the 7.2 million EVs on the road, 47% of the vehicles are in China (IEA, 2020). Beginning in 2009, the Chinese government implemented initiatives to actively support its EV industry and planned to have 5 million EVs on its roads by 2020 (Cui, 2017). By the end of 2019, EVs accounted for 3.9 million (1.9%) of the 260 million automobiles in China (Bloomberg, 2020b). Although sales of vehicles were impacted by covid in late 2019 and early 2020, sales data from original equipment manufacturers indicated that BYD, Tesla, and the VW group led EV sales in China during the first half of 2020 (Statista, 2020). China’s focus on EVs through its governmental policies will aid in realizing China’s goal to manufacture 10 million battery and plug-in electric vehicles by 2022, more than any other country (Wagner, 2020b). Despite the growth of EV’s in China, EVs still represent only 2.2 percent of the worldwide market (Hertzke, Muller, Schaufuss, Schenck & Wu, 2019). Penetration rates vary significantly across countries; Norway leads the global marketplace with a 40% penetration rate. The U.S. almost doubled its electric vehicles' sales in 2018 with the growth in its Tesla Model 3 deliveries; however, this was partly to the delivery of cars to Tesla reservation holders and governmental tax incentives (Hertzke et al., 2019). Despite differences in penetration rates, EV use is increasing and expected to continue to rise due, in part, to government initiatives that are calling for clean energy.

 

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English Language Testing for International Students in Australia

Anurag Kanwar, Compliance and Continuous Improvement Director, Group Colleges Australia

Dr. Greg Whateley, Emeritus Professor, Executive Dean UBSS and Executive Director, Group Colleges Australia

 

ABSTRACT

International education is an important market for Australia. It is also highly regulated, in particular reference to the private providers in the country – less so the public universities. Yet, despite the regulations there is a gap in assisting institutions in relation to suitability of English preparedness for international students. Private providers are advised to look to universities for assistance in setting out entry requirements for their programs for example. This practice is fraught with problems given the fact that the universities themselves struggle with the issue. Universities in Australia have also been the subject of scandals in relation to entry requirements. This paper will consider the implications of this approach for the Australian higher education sector and hopefully explain the complexity of the issue. The lack of transparency and guideline in this space is concerning and needs attention. There remains no other sector in Australia, where private providers are encouraged to model large publicly funded institutions as best practice.  The international student market in Australia is worth some $39.6 billion in revenue.  Globally, Australia is the third most popular education destination in the world (1). Education remains the country’s fourth largest export industry (2) with some 8% share of the global market. While, the industry has taken a battering due to COVID-19 it is still an important source of revenue for Australia (3). International education in Australia supports conservatively more than 250,000 jobs across the Sector. It is the largest services export contributing to some $14.617 billion to the New South Wales economy alone in 2019-2020 (4).  Considerable effort and energy has been put into developing this all important sector over many years. Australia remains unique in this regard. This effort to build the sector has been done via a whole of Government approach with the cooperation of all States, Territories and Federal Government agencies. The Australian International Education Unit that is part of the Department of Education Skills and Employment has largely spearheaded this push. The current COVID-19 pandemic has placed enormous stress on market and those delivering the products as evidenced in significant staffing cut and resourcing. The current thinking is that while 2020/2021 will continue to be challenged by restrictions on students coming into Australia, 2022 is likely to see a revival. This revival is likely to be slow, but inevitable. The actual shape and dimension of this returning market, though, remains unsure. The actual mode of delivery to international students is also under considerable scrutiny. Whether or not there is a full return to face to face teaching or a hybrid (blended) model is a matter for considerable discussion and reflection at the moment across the education sector. What is intriguing, though, is the high levels of satisfaction with the online alternative by postgraduate students in particular. The recent Deloitte study of postgraduate students (5) suggests that 77% of surveyed students preferred to stay on line rather than return to the classroom.  In our institution, Universal Business School Sydney (UBSS), the outcome of the most recent survey suggested 93% of postgraduate students preferred to stay on line. The mindset could see growth in the sector continue – just not in the usual face to face context. Our institution is examining the option of a ‘hybrid’ return – that is classes will remain on line throughout 2021 and 2022 and students will be invited to attend face to face learning observing COVID-19 protocols. In recent weeks, UBSS has secured New South Wales Government certification as providing a COVID safe environment to ensure maximum support and safety. The success of this return will largely depend on the willingness of students to return to the formal classroom – or at any rate the pre COVID-19 classroom environment. If the current survey data is anything to go by, this return to face to face, will be a slow and possibly tedious process. There is a view that things will never be the same.  Potential applicants – whether for face to face or online delivery - need to apply for a Student Sub Class 500 Visa at the cost of AUD$620.00 (6). Students are eligible to stay in country for up to five years with dependents. However, they must meet certain conditions of the visa. This includes maintaining adequate health insurance for one, and only being allowed to work hours a fortnight during a teaching semester (7). This, issue may be debatable if students choose to study online and offshore. Part of the attraction of the Student Sub Class 500 visa is that students may be able to apply for an additional two year graduate visa upon completion of their studies. There are currently a number of UBSS students who remain offshore given the travel restrictions and border controls currently in place that made it impossible for them to return to study. The fact that Australia turned to online delivery was to the advantage of these students in some respects. The assumption is these students will return to Australia when permitted. For the purpose of this discussion we will assume in country, on campus status applies.

 

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The Impact of Ambiguous Letter of Credit and Uniform Customs and Practice on International Trade

Dr. Sut Sakchutchawarn, School of Business & Economics, SUNY, Plattsburgh, NY

 

ABSTRACT

The discrepant documents of international trade transactions have been a major worldwide issue for many years. These have been significant problems for exporters and importers when banks discover discrepancies on export-import trade documents prior to making payments resulting in unnecessary delays, refused payments, and financial loss. This paper demonstrates the problems of discrepant trade documents caused by excessive terms and conditions of letter of credit and the ambiguous language of Uniform Customs and Practice 600. This paper recommends exporters advise importers not to include excessive terms and conditions in the letter of credit. This paper also recommends changing legal language of the Uniform Custom and Practice 600 into a clearer language. The guidelines with practical examples and templates for each article must be provided to institutions involved in this process in order to keep the discrepancies free. International trade creates new markets and opens countries to goods and services unavailable in their domestic economies. Exporting and importing are elements of international trade which is beneficial to all parties. As exporting and importing business continue to grow as a part of production of the world, more attention and emphasis have been placed on understanding the key aspects of international trade transaction (Sakchutchawarn and Fisher, 2016). International trade is obviously a significant factor to develop national economic growth since not all countries have the resources and skills required to produce certain goods and services. The growth of international trade can offer new opportunities for importers and exporters. It is impossible for a country to produce domestically everything for its citizens need or demand. Without foreign trade, national resources are not put to their best use. More exporters are looking for foreign markets to sell their products. Export market is normally so much larger than the firm’s domestic market. Most notably, companies export to increase their revenues. More importers are also looking for sources of supply to buy products. Companies and distributors seek out products, services, and components produced in foreign countries. However, many countries impose trade barriers in order to protect their domestic industries. International Chamber of Commerce also imposes their trade rules which are known as the Uniform Customs and Practice 600 in order to facilitate trade transactions. Typically, countries that export know how to achieve a competitive advantage in international market. However, the competition they bring is often damaging to trade transactions. Many companies are affected by global events and competitions because most of sell output and supplies are from foreign countries. They compete against products and services that come from abroad inevitably. Export transaction occurs on the premise that results in benefits to all participants, regardless of whether they are nations or individual firms. However, many exporters have run into various problems. Common problems are a failure to present proper trade documents as required by the terms and conditions of letter of credit. Exporters also face the ambiguity of the Uniform Custom and Practice 600 to comply with for payment and financing. This problem is growing and seems to be unstoppable in international trade transactions. For decades, many exporters or sellers complained that the banks refused to pay them due to discrepancies on the export documents without just cause. This can be an extreme source of frustration to both seller and buyers worldwide. It is very difficult to provide a persuasive explanation for that pattern. Therefore, it would be beneficial to society at large to study and research the problems of presentation of export documents for payment. It would be very interesting to find out what caused those discrepancies and delay payment. It is clear that exporters and trading firms worldwide would want to know how to resolve the problem of discrepancies on export documents in order to their received their payment as agreed on the trade agreement. In this paper, discrepant trade documents refer to a document or any part of a document produced by sellers or exporters that does not exactly conform to the requirements of the Uniform Customs and Practice imposed by the International Chamber of Commerce and terms and conditions of letter of credit. Letter of credit is a letter issued by a bank to arrange payment for goods. Practically, the buyer or importer requests the issuing bank to issue a letter of credit under specific terms and conditions. The seller or exporter is obligated to read and follow the requirements of the Uniform Customs and Practice and conditions of letter of credit properly. The seller is also obligated to deliver the merchandise or service as per the requirements on the letter of credit. This means the exporter must present the trade documents for payment and financing at the bank correctly.  Otherwise, the exporter will not get paid. This has been a significant worldwide problem for exporters who are always refused payments when banks find discrepancies on trade documents prior to financing resulting in unnecessary delays, refused payments, and financial loss for sellers or exporters. During the past decade, the banks discover discrepancies on export and import documents prior to making payments or financing, resulting unnecessary delays and dispute in the process. The problems still occur consistently while the climbing to find solution to these problems continues.

 

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Sources of Motivation For Rectors and Vice-Rectors

Seyhan Karasu Oznurlular, Istanbul Okan University, Turkey

Dr. Ali Ilker Gumuseli, Professor, Dean, Istanbul Okan University, Turkey

 

ABSTRACT

By using the qualitative data collected from seventeen rectors and vice-rectors currently acting as academic administrators in state and foundation universities. This research aims at examining possible practices and developments in human resources and management processes towards the enhancement of their motivation. In the review of the field literature, the sources of motivation for the rectors and the vice-rectors, as managers and academic administrators, were identified as a universal issue. In analyzing the data collected in the study, three motivational factors were identified as needed and outstanding for the rector and vice-rector positions in Turkish universities: psychological, managerial, and financial. The results of this research are anticipated to shed light on prospective human resources practices for enhancing the sources of motivation for the rectors and vice-rectors as the top academic administrators and on the developments in the management processes in higher education. As in any sector, in the higher education sector, too, the process of modernization and the importance of financial power have become strongly evident. This has given rise to a new approach in the management practices of universities as well as in the universities themselves. Opening the doors of the university to a professional management mindset instead of designating managerial positions to faculty members is an issue in discussion in the twenty-first century. Following these developments in the higher education system, extensive discussions are made on the issue of how the top management of the system should be organized. Playing a more effective role in shaping the objective and the modus operandi of higher education in this new process, public authorities have begun to get more involved in the higher education system and to closely supervise the system to build a transparent and accountable structure, meet the economic and social needs of the society, and establish a more competitive economy (1). In a way, this points at managing universities with a business logic independent from their nature as educational institutions that provide information flow. This situation raises the question of the possible factors that it will bring along to ensure and affect the motivation of the rectors and vice-rectors as employees of an enterprise. Motivation is the desire, the driving force to do something. It ensures the level and sustainability of the individual effort. The time spent demonstrates persistence. Motivation is a concept related to performance. Motivation is the reason that compels an individual to do something. The individual's real motivation is to make a profit, gain a benefit (2). This builds on the individual's underlying needs. The individual desires to possess what he/she needs. This desire is the individual's driving force for achievement (3).  Research conducted to date has adopted different approaches for motivating employees. Even though built on different bases, the force that drives their advocates to develop these theories and enables their intrinsic motivation is, in essence, their desire to contribute to the studies conducted towards enhancing employee motivation. The objective here is to improve people's collaborative efforts towards achieving the goals of their organization, their desire to work, and their will to succeed and achieve higher in the workplace. It determines the quality of the work produced in an organization, employee commitment to the organization, the level of employee resilience in the face of challenges and obstacles and the will for ambitiously performing under all conditions. All theories and field research show us that psychological, managerial and financial factors come to the fore concerning employee motivation. A joint study conducted by Kırbıyık, Eker, and Anbar in 2007 on the job satisfaction among the academicians in Turkey and the factors affecting their satisfaction, revealed five groups of factors that affect motivation among academicians. Accordingly, there is a meaningful relationship between the level of job satisfaction and the work environment, and academic workload factors (4). According to the research results, academicians are generally happy with the work they do. While a liberal environment, recognition, workplace diversity are the most satisfying factors, salaries and fringe benefits rank lowest in terms of satisfaction.  A joint study conducted in 2002 by Baş and Ardıç comparing the job satisfaction levels of academicians in state and foundation universities, bases the dimensions that create job satisfaction for academicians on 10 components. These comprise all academic conditions that affect teaching and research activities, aids and managerial support actions offered to talents, competence and behavior of colleagues (peers), the job's level of attraction for the individual, means provided to the person in respect of physical conditions and working opportunities, payment/salary levels, support to education and research, job security, a liberal environment free of restrictions, and administrative duties (5). According to the results obtained in some of the dimensions, academicians who work in state universities are less satisfied in their jobs than those who work in foundation universities. In terms of payments/salary levels, only 10% of the academicians in state universities are happy with their salaries. While 12% of the participants remained unresponsive to the questions, survey results have shown that 64% of the academicians are not happy with their salaries. Furthermore, academicians who work in foundation universities are more satisfied with the support provided to education and research. The striking finding that emerged is the high level of satisfaction among the academicians in both state and foundation universities in respect of their administrative duties. Overall, the results of the study have shown that academicians who work in foundation universities are more satisfied in their respective fields than those who work in state universities.

 

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Persuasiveness of Fit Between Imaginary Perspective and Advertising Appeal: Application of Affordance Cues

Dr. Chung-Lin Toung, Nanfang College of Sun Yat-sen University, Guangdong Province, PRC

 

ABSTRACT

We hypothesize that without any guiding text, the presence or absence of affordance cues in an advertisement would prime individuals to automatically adopt a specific imaginary perspective and prefer a certain type of advertising appeal. To validate the hypothesis, 98 college students were recruited and participated in an experiment using ocean-side resort advertisements as the environmental stimulus. The results show that with the presence of affordance cues in the advertisement, the subjects were primed to imagine from the observer’s perspective and preferred symbolic benefit appeal; in the absence of affordance cues in the advertisement, the subjects were primed to imagine from the actor’s perspective and preferred experiential benefit appeal. To verify that persuasiveness is mediated through embodied simulation, imaginary ability, advertisement favorability, and text-picture consistency were used as control variables to exclude possible mediating variables; therefore, the results of the study were not confounded with other potential explanatory variables. When extracting memory from past events or projecting onto future events, an individual can assume one of two perspectives: the actor’s perspective or the observer’s perspective. The former refers to individuals seeing imaginary scenes directly in front of them and being involved in the scenes when they are imagining, while the latter refers to them viewing their actions in scenes as outsiders (Libby & Eibach, 2011a, 2011b). These two different imaginary perspectives lead to different types of mental information, which in turn affects an individual’s interpretation of an imaginary event or action. When adopting an observer’s perspective, individuals emphasize the meaning of individuality that is attributed to the imaginary event or behavior and the personality that is exhibited in the imaginary scene and attach importance to whether the imaginary event or behavior allows self-enhancement; in contrast, when adopting an actor’s perspective, individuals emphasize the meaning of the scene in the imaginary event or behavior and the sensory perception aroused by the scene. Therefore, imagining from the actor’s perspective emphasizes the perceptions and emotions extended from the imaginary scene and whether the imaginary scene primes a self- experience; conversely, imagining from the observer’s perspective emphasizes the self-concept derived from the imaginary scene and whether it is possible for the imaginary scene to have a self-enhancement effect (Libby & Eibach, 2011a, 2011b; Libby, Valenti, Hines, & Eibach, 2014). Specifically, differences in imaginary perspective lead to different cognitive focuses in individuals. When imagining from the observer’s perspective, individuals tend to extract the more abstract or more self-symbolizing portion of the imaginary scene and use this to define their self-concept. Conversely, when imagining from the actor’s perspective, individuals tend to focus on the more concrete or experiential portion of the imaginary scene and use this to perceive the sensory perception primed by the scene. In practice, manufacturers have extensively used mental imagery-evoking advertisements, attempting to coax consumers to learn through the product attribute benefits created by mental simulation and thus to improve the product acceptance (Childers & Houston, 1984; Swann & Miller, 1982). However, in using mental imagery-evoking advertisements, it is necessary to determine which imaginary perspective consumers adopt when processing the manufacturers’ message because different imaginary perspectives lead to different types of visual information and ultimately different levels of persuasiveness of the advertisement message. In previous studies on mental imagery evoking, mental imageries were primarily primed through guiding text (Babin & Burns, 1997; Libby & Eibach, 2011a, 2011b; Libby et al., 2014) and were rarely generated by the subjects themselves. In practice, however, it is impossible for the manufacturer to ask consumers to adopt a specific perspective to process advertising appeal; thus, it is urgent to understand the factors that influence consumers’ adoption of perspective. Therefore, this study focuses on methods to enable consumers to automatically adopt a specific imaginary perspective without any guiding text, which can assist manufacturers in designing an appropriate type of advertising appeal to communicate with consumers.  Gibson (1977, 1982) proposed the concept of affordance cue and argued that individuals can understand the relationship between their behavior characteristics and environmental characteristics directly through visual information, without involving their complex cognitive systems. Such visual information provides individuals the information concerning possible uses and functions of an object and the actions that may be taken on the object. According to the concept of affordance cue, individuals’ interpretation of an object includes not only the physical properties, e.g., shape, size, color, and location, but also messages that guide the individuals’ actions ( Gibson, 1982; Gibson & Walker, 1984). Therefore, Gibson (1977, 1982) argued that affordance cues are not merely visual stimuli of physical attributes in the environment but also the interpretation of physical attributes and the message that guides individuals to act accordingly.

 

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Copyright: All rights reserved. No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, including photocopying and recording, or by any information storage and retrieval system, without the written permission of the journal.  You are hereby notified that any disclosure, copying, distribution or use of any information (text; pictures; tables. etc..) from this web site or any other linked web pages is strictly prohibited. Request permission / Purchase this article:  jaabc1@aol.com

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Index: The Library of Congress, Washington, DC:    ISSN: 1540 – 7780

Index: Online Computer Library Center, OH:   OCLC: 805078765 

Index: National Library of Australia: NLA: 42709473

Index: Cambridge Social Science Citation Index, CSSCI.

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