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Title: Environmental Regulations and Corporate Strategy: A Nafta Perspective by Alan M. Rugman, John J. Kirton, Julie A. Soloway ISBN: 0-19-829588-X Publisher: Oxford Univ Pr Pub. Date: August, 1999 Format: Hardcover Volumes: 1 List Price(USD): $110.00

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Average Customer Rating: 5 (2 reviews)

Rating: 5
Summary: From a review published in: International Affairs, Vol 76(1)
Comment: This is a refreshing, multi-disciplinary study that highlights the importance of firms, governments and international institutions in the regional and global marketplace. The authors, who draw on the disciplines of management, economics, political science and law, develop a model of complex institutional responsiveness based on an array of innovative firm strategies that have been implemented through the North American Free Trade Agreement (NAFTA) to overcome environmental regulatory protectionism. Based on an analysis of trade-environment disputes in North America from 1980 to the present, the authors examined 24 leading case studies (of 84 relevant cases) and conducted 230 confidential interviews with senior executives and officials in governments, environmental groups and research centres. The cases focus on firms that have sought to benefit from environmental regulatory protection from free market competition (e.g. in agriculture, forestry and fishery) and on firms that have sought to defend themselves against this type of regulatory shelter (e.g. in automobiles and chemicals). Three fascinating and highly detailed cases on fuel, agriculture and the automotive industry are analysed through their complex institutional responsiveness model for which five levels of environmental regulation that can affect four types of firms are identified. Three major findings are presented in this pioneering work. First, NAFTA's environmental institutions benefit the regional ecology and all North American firms through increased competitiveness and better market access. Second, complex institutional responsiveness helps to explain the firm's political strategy in the face of the rising incidence of trade-environment friction within NAFTA (and on a global scale). Third, a NAFTA community of stakeholders is emerging from the firm's varied responses to highly complex issues, but there is still much to be done on a policy level to broaden and deepen this community.

Rating: 5
Summary: Seminal Work on Impact of NAFTA's Enviro Side Agreements
Comment: Another important work by the Rugman, Kirton and Soloway trio. Building on their earlier writings, in this collection the focus is largely on the business impact of the environmental side agreements. These side agreements could form an important model for future treaties, so they are worthy of the close and careful study given here. This is a vital resource for a broad range of scholars and practicioners.