Negative country of origin events: the case of the french nuclear tests

In 1995 the French Government conducted a series of nuclear tests at Mururoa Atoll in the Pacific Ocean. Reactions from governments and the public in Australia and New Zealand were intensely negative. Various consumer groups organised boycotts of French goods and the offices of many French subsidiaries were picketed. This paper examines the commercial effects on subsidiaries of French firms in Australia and New Zealand. It also considers the strategies adopted by management to minimise the threat. The results show that the majority of French subsidiaries were affected but the effects were of short duration. Many firms reacted inappropriately by taking steps that altered their long term structure and strategy.