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Economics of Maritime Security

Importance of Maritime Security. Seaports and ocean-going ships have economic and economic significanceEssential to international trade and national securityCritical links in a globalized supply chainOver 90 percent of international trade is carried by sea. Need for collaboration. Maritime securi

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Economics of Maritime Security

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    1. Economics of Maritime Security Inha University Incheon, South Korea

    2. Importance of Maritime Security Seaports and ocean-going ships have economic and economic significance Essential to international trade and national security Critical links in a globalized supply chain Over 90 percent of international trade is carried by sea

    3. Need for collaboration Maritime security implementation needs collaboration across the entire supply chain Across nations and across various elements in the supply chain Implementation of security measures entails compliance costs

    4. Research issues/questions What are the economic benefits and costs of implementing maritime security initiatives? Are the costs fair and proportional to the benefits of maritime security? Who should pay for these costs? How should the costs be shared among participants? Does port competition reduce the effectiveness of maritime security initiatives?

    5. Economic benefits? There is still a great deal of controversy over the impact of maritime security initiatives on efficiency, service quality and international competitiveness of maritime transport providers

    6. Economic costs? Direct costs of implementation? Indirect costs of ineffective security management? Are there opportunity costs?

    7. Who should pay and how the costs be shared? Should it be government-funded? Should it be paid by beneficiaries? If it is paid based on “beneficiary pays” principle, how do we measure benefits? Should other ports belonging to the same region contribute to the paying of the costs?

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