Blockchain technology in international business: changing the agenda for global governance

Purpose Blockchain technology has extended beyond the border of cryptocurrency and taken hold in various areas of international business. This study aims to analyze the impacts of blockchain on international business and the resulting challenges and implications for global governance. Design/methodology/approach The analysis of multiple blockchain applications in international finance, banking and insurance, supply chain management and logistics and marketing and advertising shows that the use of blockchain in international business has different impacts on global governance. Findings Although the protection of property rights can be improved and transaction costs can be reduced, the effects on other functions of global governance are more ambivalent. Research limitations/implications As a recommendation for future studies, the need for more multidisciplinary and empirical research is proposed. Practical implications As the technology disrupts business activities, it also affects the governance of these activities on a global scale. Suggestions for the future regulation of blockchain applications in international business are developed. Originality/value Blockchain technology has extended beyond the border of cryptocurrency and taken hold in various areas of international business. This study aims to analyze the impacts of blockchain on international business and the resulting challenges and implications for global governance. The application of blockchain technology in international business across multiple industries is explored in order to draw conclusions about its impacts on global governance. It is determined that blockchain brings about both challenges and benefits for global governance.

Strategies of Forestry Carbon Sink under Forest Insurance and Subsidies

We take the forest insurance supply chain, composed of a forestry enterprise and an insurance company, as the research object. The forestry carbon sink, operated by the forestry enterprise, is the subject matter of insurance. The Stackelberg game model is constructed to study the optimal strategies of the forestry enterprise and insurance company under the forest insurance mechanism, as well as the impact of government subsidies, probability of deforestation, and carbon limit level on the decision-making and profit of the forestry enterprise and insurance company. The results show that the larger the carbon limit, the looser carbon restraint policy, which causes the forestry enterprise to reduce the scale of carbon sink forest, and the insurance company lowers the premium level. As the probability of deforestation increases, both the scale of the carbon sink forest and the premium level will decrease. Direct subsidies for the premiums of the forestry enterprise are conducive to expanding the scale of carbon sink forest, but will lead to the insurance company improving the premium level. Providing indirect subsidies to the insurance company’s operating costs will not only expand the scale of the carbon sink forest, but also lower the premium level. In the case of the same number of premium subsidies, indirect subsidies are more effective than direct subsidies in increasing the forestry enterprise’s income and promoting it to expand the forest scale.

Analysis of Factors Affecting China's Cargo Insurance Demand Based on E-commerce Background

This article uses the time-series data of China from 2000 to 2014 to analyze the influencing factors of cargo insurance demand in the context of e-commerce by using multiple linear regression models. The authors discuss the influence of economic development, cargo insurance supply and environmental factors on cargo insurance income, insurance depth, and insurance density. The results show that the risk situation, e-commerce development and the development of the logistics industry have a significant positive impact on the demand for cargo insurance; price is proportional to cargo insurance demand; and GDP has negative impact on the depth of cargo insurance.

Book Reviews

Nathaniel Hendren of Harvard University reviews “Insurance and Behavioral Economics: Improving Decisions in the Most Misunderstood Industry”, by Howard C. Kunreuther, Mark V. Pauly, and Stacey McMorrow. The Econlit abstract of this book begins: “Explores the behavior of individuals at risk, insurance industry decision-makers, and policymakers at the local, state, and federal levels involved in the selling, buying, and regulating of insurance. Discusses an introduction to insurance in practice and theory; anomalies and rumors of anomalies; behavior consistent with benchmark models; real-world complications; why people do or do not demand insurance; demand anomalies; descriptive models of insurance supply; anomalies on the supply side; design principles for insurance; strategies for dealing with insurance-related anomalies; innovations in insurance markets through multiyear contracts; publicly provided social insurance; and a framework for prescriptive recommendations. Kunreuther is James G. Dinan Professor of Decision Sciences and Business and Public Policy in the Wharton School and Co-director of the Wharton Risk Management and Decision Processes Center at the University of Pennsylvania. Pauly is Bendheim Professor in the Department of Health Care Management in the Wharton School at the University of Pennsylvania. McMorrow is a research associate in the Health Policy Center at the Urban Institute.”