Trade Liberalization, Consumer-Friendly and Corporate Social Responsibility
Wang Ying, Luo Ji, Duan Xuemei
Abstract
Not competitive totally market in an international duopolistic market, we prove that in case of 1. When both
foreign and domestic company care more the consumer-oriented CSR initiatives, it will decrease the tariff rate if
the weight is high initially; 2. When foreign company cares more the consumer-oriented CSR initiatives, it will
decrease the tariff rate if the weight is high initially; however, 3. When only domestic company cares the
consumer-oriented CSR, it will increase the tariff rate against the foreign company. In an international
duopolistic market, the consumer-oriented CSR initiative of both companies is the dominant strategy if the CSR
cost is sufficiently low.
Full Text: PDF