Diagonal cumulation of origin as the EU's institutional incentive mechanism for promoting international trade and businessJurše, Milan (Avtor) Logožar, Klavdij (Avtor) Korez-Vide, Romana (Avtor) international businessinstitutional incentive mechanismdiagonal cumulation of originEuropean UnionEUtransaction costsWestern Balkan CountriesIn this paper we explore the effects of a diagonal cumulation of origin as the EU's Common Commercial Policy (CCP) incentive mechanism that affects the intraregional trade and transaction cost structure of firms engaged in cross-border business operation. The research explores how firms should frame their cross-border physical flows of goods and the configuration of their value-adding processes for taking advantage of diagonal cumulation of origin. The empirical analysis is based on an in-depth case study of effects of the 'SAP+ diagonal cumulation of origin' on changes in the transaction cost structure of a selected Slovenian firm operating within the household-appliance sector in one of the Western Balkan Countries. Based on eligibility of local subsidiary for using origin of goods in its import/exporttransactions the cost calculations were made for its products and then three different business scenarios were developed for showing the effects of the mechanism on transaction cost changes of a firm. The paper concludes that, at the conceptual level, the mechanism of diagonal cumulation of origin may serve as an effective institutional cross-border trade-promoting tool.20102017-07-17 13:50:41Znanstveno delo66904ISSN: 1331-8004UDK: 339.94(4)OceCobissID: 1301937COBISS_ID: 10535708ISSN pri članku: 1331-8004NUK URN: URN:SI:UM:DK:LAQFVMWCsl