The Effects of Economic Animosity and Nationalism on International Trade

Document Type : Original Independent Original Article

Author

Assistant Professor, Department of Economics and Management, Naragh Branch, Islamic Azad University, Naragh, Iran

Abstract

The tension between countries caused by disputes over territory, economic pressures, embargoes and religious conflicts has worsened relations between nations in such a way that, if these differences are considered insulting or unfair, they can cause feelings of hostility and increase ethnic and finally they will express their feelings in the market.Therefore, the present study aimed to investigate the Impact of Economic Animosity on Consumer nationalism and Product-Country Images.In this regard, a sample of 338 people from the community of 2,800 graduates of economics and business in two countries were selected by a simple random method and questionnaires were distributed and the data were analyzed using the structural equation technique. The results showed: a) levels of animosity towards a foreign country do not affect either the perceived level of the general country image of the country or the perceived quality of the products made there. Conversely, findings support a strong and negative relationship between consumer animosity and product receptivity; as a Consequence, consumers with a higher level of economic animosity are less willing to welcome more imports from countries perceived as hostile, they show a lower level of pride and are less available to share positive word of mouth. b) Economic Animosity towards a foreign country can also increase nationalism feelings,and increase the preference for domestic products/services to express"patriotism".Therefore, the results of this study, can provide policymakers with a clearer understanding of the potential negative consequences of political and economic actions that are perceived as offensive or unfair.

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