International Dumping Laws
International Dumping Laws Xiaoya Xie
If a company exports a product at a price normally lower than the price its charge at home product, it is said to be “dumping” the product. (1) In order to get into the foreign market the government sometimes gives subsidies to domestic companies to encourage dumping into other countries
Types of dumping:
(1) Producers are trying to stay competitive in another country.
(2) Dumping result from international price discrimination
(3) Producers are trying to get rid of excess stuff that they cannot sell at their own country.
(4) Produces divide product into domestic and foreign market and charges price what the buyer willing to pay and get more benefit by this strategy.
We always see products from electric products to daily use made in China with very low price all over the world. Due to low material and labor cost, the cost of products is low comparable to the local market. When a large amount of products with low price going into another country, the dumping may happen. From the article, we get some points about international dumping laws.
Consequence of dumping: Usually the industry of importer country is to be hurt by the dumping. Many government take action against dumping to defend domestic industry. If a domestic country can establish that its market is being injured by dumping, an anti-dumping duties are imposed on goods from dumper’s country.
There are different ways to calculate the product is dumped or not. The main one is based on the price in the exporter’s domestic market. The other calculation is price charged by the exporter in another country, or a calculation based on the combination of the exporter’s production costs, other expenses and normal profit margins. Anti-dumping measures can only be applied if the dumping is hurting the industry in the importing country. (1)
The injured importing country may take anti-dumping measures to defend domestic economy. The Anti-Dumping
If a company exports a product at a price normally lower than the price its charge at home product, it is said to be “dumping” the product. (1) In order to get into the foreign market the government sometimes gives subsidies to domestic companies to encourage dumping into other countries
Types of dumping:
(1) Producers are trying to stay competitive in another country.
(2) Dumping result from international price discrimination
(3) Producers are trying to get rid of excess stuff that they cannot sell at their own country.
(4) Produces divide product into domestic and foreign market and charges price what the buyer willing to pay and get more benefit by this strategy.
We always see products from electric products to daily use made in China with very low price all over the world. Due to low material and labor cost, the cost of products is low comparable to the local market. When a large amount of products with low price going into another country, the dumping may happen. From the article, we get some points about international dumping laws.
Consequence of dumping: Usually the industry of importer country is to be hurt by the dumping. Many government take action against dumping to defend domestic industry. If a domestic country can establish that its market is being injured by dumping, an anti-dumping duties are imposed on goods from dumper’s country.
There are different ways to calculate the product is dumped or not. The main one is based on the price in the exporter’s domestic market. The other calculation is price charged by the exporter in another country, or a calculation based on the combination of the exporter’s production costs, other expenses and normal profit margins. Anti-dumping measures can only be applied if the dumping is hurting the industry in the importing country. (1)
The injured importing country may take anti-dumping measures to defend domestic economy. The Anti-Dumping