investigating the role of transaction costs on competitiveness of steel industry(the case of mobarake steel company of isfahan)

Document Type : Research Article

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Abstract

One of the major concerns of the country's economy in the fourth and fifth programs for socio- economic development is the expansion of trade and barter crystallized in the global economy. But the point has always been how to learn or improve their ability to compete with foreign competitors. If the roots of competitiveness and constituent factors affecting the competitiveness can be identified, it could be suggested the solutions to increase the competitiveness of companies in the business environment.
Steel industry, as a mother industry , plays an important role in economic development, and dynamics of each country. Thus, investigating the presence or absence of comparative advantage in this industry is necessary. One factor that affects competitiveness by increasing the cost price is the transaction costs. One of the objectives of competition of firm's is reducing transaction costs that indicated its effectiveness in reducing prices. The case study in this paper is Mobrake Steel Corporation and to answer the research questions, domestic resource cost (DRC) index is used.The results of this study in 1390 shows that the company has currently comparative advantage in three selected product groups ( Hot and pickling, cold and coated or other ) , but reducing transaction costs, on average, had the greatest effect on the domestic resources cost index of cold products and hot products has the lowest variation.

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Journal of Applied Economics Studies in Iran
Volume 3, Issue 12 - Serial Number 12
February 2015
Pages 203-220

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