The objectives of a nonmarket strategy accomplish two things: they focus attention on the issue, and they help clarify alignment between stakeholders (those who are on the same side, who have the same or similar objectives). It is often helpful to specify a primary objective (stop this bill from getting passed!) but also a contingency objective (if it does pass, attempt to get, or avoid, some key wording). "For example, the domestic auto industry abandoned its primary objective of preventing higher fuel economy standards and adopted its contingent objective of obtaining flexibility in meeting the standards and measures to protect U.S. jobs" (Baron, 2010, p. 191).
Government arenas exist at many levels, including local, state, federal, and international, and they may take many different forms, from legislative to judicial and all the oversight agencies in between. Often, stakeholders may have some say in the arena where the issue will be addressed. Determining the desired arena can be a significant step in the development of a nonmarket strategy for resolving an issue.
Usually, nonmarket issues are initiated by interest groups. For example, in the case of electric vehicles that are too quiet, the issue was raised by consumer complaints. And typically, the stakeholder(s) that initiate an issue are the ones that determine where the issue will be addressed. But this is not always the case. Sometimes other stakeholders, including firms, may have an opportunity to drive the selection of an institutional arena.
Carbon border taxes are an emerging issue in climate change policy. As more countries enact emissions limits, they may begin taxing certain imports to maintain fair competition. Please read the following article for some insight into this issue:
During the Trump Presidency, tariffs had become a major topic of discussion. Former President Trump repeatedly threatened tariffs on countries that manufacture goods outside of U.S. borders since early in his presidency, and enacted a number of controversial tariffs [6] on a variety of goods. This is a very contentious issue, and is a prominent example of public politics.
There are three general approaches to nonmarket strategy in institutional (government) arenas: Representation, Majority Building, and Information Provision. Each type of strategy involves its own set of tactics, or activities, to execute the strategy.
Please keep in mind that these are general approaches, not specific strategies. Strategies are explained on the next page.
Links
[1] http://www.flickr.com/photos/jstephenconn/2803464442/in/photostream/
[2] http://www.flickr.com/photos/jstephenconn/
[3] http://creativecommons.org/licenses/by-nc/2.0/
[4] https://www.nytimes.com/2021/07/14/climate/carbon-border-tax.html
[5] https://www.e-education.psu.edu/eme444/sites/www.e-education.psu.edu.eme444/files/Europe%20Is%20Proposing%20a%20Border%20Carbon%20Tax.%20What%20Is%20It%20and%20How%20Will%20It%20Work_%20-%20The%20New%20York%20Times%20-%202021.pdf
[6] https://www.bloomberg.com/news/articles/2018-06-29/shots-fired-everything-you-need-to-know-about-the-trade-war
[7] https://www.nytimes.com/2017/01/03/opinion/is-trumps-tariff-plan-constitutional.html
[8] https://www.e-education.psu.edu/eme444/sites/www.e-education.psu.edu.eme444/files/Is%20Trump%E2%80%99s%20Tariff%20Plan%20Constitutional_%20-%20The%20New%20York%20Times%20-%20Jan%202017.pdf
[9] https://money.cnn.com/2018/03/09/news/economy/trump-tariffs-wto-legal/index.html
[10] https://www.reuters.com/article/us-plains-all-amer-cactusii/u-s-shale-shippers-will-pay-surcharge-for-trump-steel-tariffs-idUSKCN1US200
[11] https://www.nytimes.com/2018/03/16/us/politics/trump-tariffs-lobbying.html