Psychological Tariffs

Via The Economist comes an interesting paper on the effect of cross-cultural perceptions of trustworthiness on trade between countries. Cultural bias, the authors conclude, can be as potent a determinant of trade flows as formal protectionism.

Comments

[andy]

Not surprising at all, really. Who thought that international enmity ceases in corporate boardrooms?

[Jeff]

“…but we don’t want the Irish!”

[Ruthless]

“This effect is stronger for good that are more trust intensive and doubles or triples when trust is instrumented with its cultural determinants.”

Isn’t there a typo (at least) in there somewhere?

And another thing: Which comes first: formal protectionism or cultural bias?

[jddf]

Let’s be fair. Everyone wants to minimize risk for any level of investment. Risk is minimized by doing business with places one understands. For most people, places that they understand will correlate highly with places that are close geographically, have similar cultures, etc.

That does not make it “cultural bias.” Even the authors of the paper call this just ‘perceptions of culture.’ The difference is more than semantics; one term evokes xenophobia and the other acknowledges differences.

[ummar barry]

FROM: UMMAR BARRY,
LOT 904 KOUMASI,ABIDJAN
COTE D’ IVOIRE.
E-MAIL: [e-mail]
Telephone: [phone].

Dear Beloved ,

Please do not be embarrassed or offended that a total stranger is writing to you. At this point in my life, I have no other option than to seek assistance. Any way, I can get it due to my present predicament, not mandatory nor will I in any manner compel you to honour against your will.
I am Ummar BARRY I am 25 years old the only son of my late parents my father was a highly reputable businness magnet-(a cocoa merchant)who operated in the capital of Ivory coast during his life.
.
It is sad to say that he passed away by steriously in France during one of his business trips abroad year 12th.Febuary 2002 though his sudden death was linked or rather suspected to have been masterminded by an uncle of his, who travelled with him at that time by poisoning him.

My mother davelops high blood prasure becouse of the death of my father she later died , before her daeth on June 27th 2002 she called her secretary who accompanied her to the hospital she told him that they has the sum of ten million,seven hundred thousand United State Dollars.(US$10.700,000) left in one of the security company here in Abidjan Ivroy coast West Africa.

She further told him that they deposited the money in my name,and finally issued a written instruction to her lawyer whom she said is in possession of all the necessary documents to this fund really I don’t know what to do.Now I am with our pastor which my mother handed me over to him before her death I need your assistance at this point in time.

I have suffered a lot of set backs as a result of my late parents inculding political crisis here in Ivory coast.The death of my parents actually brought sorrow to my life., in a sincere desire of your humble assistance in this regards.Your suggestions and ideas will be highly regarded.

1. Can you honestly help me as your son?
2. Can I completely trust you?
Please,Consider this and get back to me as soon as possible.
Thank you so much.
My sincere regareds,
Ummar Barry.