Case study: Don’t dump on us!
Case study: Don’t dump on us!
1. Examining and accepting tender for goods and services by governments may have both good and bad influences to a country. Therefore, some responsibilities is very necessary. For developing countries, government tender is good for them as they need to increase the GDP for themselves. If more foreign companies invest here, more choices for citizens to consume and also the government expenditure will also increase. Those consumptions can help the countries to rise the GDP. However, for those developed countries. Tender may not suitable for them as it will make nation’s money going out to other countries.
2. In my view, the shared tender is not an ethical position to take. The government should protect those local infant industries as those company may close down easily when they compete with other mature foreign companies. Moreover, dumping always happens when there is a tender. Dumping will also have a negative effect for the local company as it will decreases the price of goods even lower than the cost of input, as a result, the local company could not compete with those foreign company as they may not have profits when they also lower the prices. Consequently, local companies will lose both profits and market share.
3. This behaviour is unethical. The EU company should not increase their profits by reduce local company’s revenue through showing the prices differences. Although as a company, maximizing the profits is only the purpose and the behaviour is not against laws, it is unfair to local companies. Moreover, if the local company also follow this kind of behaviour, the selling market will be very messy. In addition, as customers, they would make choices by themselves, if the foreign firm show the higher price of the local company’s, it actually means to force those customer to purchase the goods of its company instead of being willing to buy by customers. Therefore, we also can say that it is unfair to consumers.
1. Examining and accepting tender for goods and services by governments may have both good and bad influences to a country. Therefore, some responsibilities is very necessary. For developing countries, government tender is good for them as they need to increase the GDP for themselves. If more foreign companies invest here, more choices for citizens to consume and also the government expenditure will also increase. Those consumptions can help the countries to rise the GDP. However, for those developed countries. Tender may not suitable for them as it will make nation’s money going out to other countries.
2. In my view, the shared tender is not an ethical position to take. The government should protect those local infant industries as those company may close down easily when they compete with other mature foreign companies. Moreover, dumping always happens when there is a tender. Dumping will also have a negative effect for the local company as it will decreases the price of goods even lower than the cost of input, as a result, the local company could not compete with those foreign company as they may not have profits when they also lower the prices. Consequently, local companies will lose both profits and market share.
3. This behaviour is unethical. The EU company should not increase their profits by reduce local company’s revenue through showing the prices differences. Although as a company, maximizing the profits is only the purpose and the behaviour is not against laws, it is unfair to local companies. Moreover, if the local company also follow this kind of behaviour, the selling market will be very messy. In addition, as customers, they would make choices by themselves, if the foreign firm show the higher price of the local company’s, it actually means to force those customer to purchase the goods of its company instead of being willing to buy by customers. Therefore, we also can say that it is unfair to consumers.