National Security Export Control Regimes: Determinants and Effects on International Business

Abstract

AbstractCountries restrict exports for a number of reasons ranging from national security, foreign policy to the preservation of scarce resources. Most of the restrictions are imposed on military and high‐technology products. This article focuses on national security controls exercised on dual‐use goods, that is, commercial products with current or potential military applications. The article develops a typology of paradigms for national export control regimes: high state–low business, low state–high business, high state–high business, and low state–low business. It then introduces a theoretical model of the economic and political determinants and effects of such paradigms. The study presents national case studies and examines the effects of the four paradigms on international business. The article fills important gaps in our understanding of national export control regimes and their implications for managers of international business firms. © 2016 Wiley Periodicals, Inc.