This paper analyzes the interactions between international environmental po
licy and multi-national corporate strategy. The main contribution is buildi
ng a new conceptual framework to analyze the type of corporate strategy dev
eloped in the presence of both national and international environmental reg
ulations. This framework distinguishes between firm-level compliance with e
nvironmental obligations and the development of resource-based green capabi
lities. It also classifies major environmental regulations and incorporates
a discussion of public policy.