National Sentiment and Consumer Choice: The Iraq War and Sales of US Products in Arab Countries
Did the rise in anti-American sentiment caused by the Iraq war a ect sales of US goods abroad? We address this question using data on soft drink and fabric detergent sales in nine Arab countries. We nd a statistically signi cant negative impact of the war on sales of US soft drinks in seven countries. The impact dissipates after a few months in two countries but persists in the other ve. In the case of detergents we only nd a signi cant negative impact in one country. We conclude that international politics can sometimes a ect consumer behavior and impact market outcomes.
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