ABSTRACT
One under-researched aspect of globalization as it can affect multinational enterprises (MNEs) is the manner in which environmental regulations call forth new and different strategies. Some MNEs can afford to ignore environmental regulations while others must develop new green capabilities. The chapter explores the general conditions which determine the appropriate strategies for MNEs in a global environment where environmental regulations are of increasing importance. This chapter advances on a recent paper by Rugman and Verbeke (1998a). In that paper both domestic and international environmental regulations have been identified and the firm-level response to these analyzed. Also explored were the Porter and Van der Linde (1995) and “pollution haven” hypotheses. In this paper this work will be extended by a focus upon the environmental strategies of MNEs. First, we shall define globalization and then develop a framework for coping with globalization at firm and government levels. Second, we shall reinterpret recent work on firstmover advantages from an international perspective. Finally, we shall present a model of corporate strategy and environmental regulations, at the global level.
