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Environmental Regulations and Corporate StrategyA NAFTA Perspective$
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Alan Rugman, Julie Soloway, and John Kirton

Print publication date: 1999

Print ISBN-13: 9780198295884

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198295884.001.0001

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Firm Responses to Trade and Environment Regulation

Firm Responses to Trade and Environment Regulation

(p.114) 7 Firm Responses to Trade and Environment Regulation
Environmental Regulations and Corporate Strategy

Alan Rugman

John Kirton

Julie Soloway

Oxford University Press

One of the classic threats presented by environmental regulatory barriers that restrict the strategies of internationally engaged firms relies on the foreign environmental regulations that do not allow large export markets. In some situations, regulatory barriers have proven to be alarming when moved to higher levels, reinforced by protectionist coalitions and environmental groups across the foreign market, and have been administered by a trade dispute system in national governments. However, lobbying and litigation entails a competitive disadvantage for a firm since these processes requires lots of time and incur several costs. As such, the alternative response was to produce at home instead and meet the regulations in the Vogel-type ‘California’ export market. Firms today have to face varied situations, not only because of environmental regulations but also because of internationally integrated production systems. In this chapter, we look into the various political and corporate strategies for firms, while examining the factors affecting the conditions of complex institutional responsiveness.

Keywords:   regulatory barriers, environmental groups, foreign market, export market, institutional responsiveness, political strategies, corporate strategies

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