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U.S. national security export controls: Implications for global competitiveness of U.S. high‐tech firms
Author(s) -
Parkhe Arvind
Publication year - 1992
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250130105
Subject(s) - international trade , national security , fungibility , high tech , business , control (management) , international market , position (finance) , economics , international economics , industrial organization , finance , political science , law , management
U.S. exporters of high‐technology, ‘dual‐use’ products are competitively disadvantaged in global markets by the complexity, range, and stringency of U.S. national security export controls. This paper demonstrates that fungibility of high technology and lax interpretation of multilateral export control agreements by other advanced countries have made the existing control regime ineffective. It further shows that persistent U.S. restrictiveness of exports in non‐critical, widely available goods and technologies may needlessly and permanently erode U.S. firms' competitive position in existing as well as rapidly‐opening markets worldwide. The need to revise the notion of national security to include not only military security, but also its complement, economic security, is discussed. The pivotal issue of enforceability of multilateral controls is explored, and corporate strategies for U.S. high‐tech firms to achieve export control policy change are suggested.