Business Costs and Business Policy for Export Controls

Abstract

The objectives of this study are to assess the costs to American companies of U.S. export controls, and to suggest business policies to minimize their adverse effects. The 1982 Soviet gas pipeline case is used as a concrete example. Original field research among business people and government officials in Europe and the U.S. is the main data source. The main findings of the study are that the costs of export controls to American business that can be measured are very high, and much above government estimates. The optimum strategy for business to follow is to influence the executive branch of government rather than to press for compensation schemes or legislative changes.© 1987 JIBS. Journal of International Business Studies (1987) 18, 1–18