My Presentation
BACK TO INTERNATIONAL TRADE-----Definition
Dumping occurs when a country sells its products in foreign market at a price lower than in domestic market or at a price below cost, which causing damage to the industry with competency in foreign country.
Anti dumping is a series of resistant measures to the dumping. It imposes additional tax besides tariff on dumping goods, so that these import goods cannot be sold at low price. Anti dumping duty is used most widely.
MEASURES COULD BE TAKEN TO DEAL WITH AMERICAN’S PROTECTIONISM
1. Raise the value added to the tire products.
The tires exported are mainly middle or low-class products targeted at foreign spare tire market. The technology content and brand value of the products are relatively low in comparison to foreign products. In addition, because of the low prices and giant volume of exports, the export of tires can be easily judged as dumping and result in conflicts. According to this, tire companies should pay more attention to R&D programs in search of competitive products that are high value-added.
2. Explore potential markets apart from the U.S.
It is wise to build stronger trade network overseas other than U.S. to avoid risk. For examples, trial spots of marketing can be set in Mid-east districts, Africa, and Latin-America, which statistics suggest have witnessed a growing demand for tires in recent years. On the other hand, attention should also be paid to the potential market inside China. In fact, pioneers such as “Huanghai Rubber” have seen the opportunity in the government’s policy called “leading cars to the countryside” and receive a promising return by taking advantage of this.
3. Set up alarm device for trade frictions
When the accusation first took place in the case, although Chinese companies responded actively for their individual interest, they failed to stay united and help each other to find a way out in the absence of a guild. Certain firms went helpless in face of the unfavorable
Dumping occurs when a country sells its products in foreign market at a price lower than in domestic market or at a price below cost, which causing damage to the industry with competency in foreign country.
Anti dumping is a series of resistant measures to the dumping. It imposes additional tax besides tariff on dumping goods, so that these import goods cannot be sold at low price. Anti dumping duty is used most widely.
MEASURES COULD BE TAKEN TO DEAL WITH AMERICAN’S PROTECTIONISM
1. Raise the value added to the tire products.
The tires exported are mainly middle or low-class products targeted at foreign spare tire market. The technology content and brand value of the products are relatively low in comparison to foreign products. In addition, because of the low prices and giant volume of exports, the export of tires can be easily judged as dumping and result in conflicts. According to this, tire companies should pay more attention to R&D programs in search of competitive products that are high value-added.
2. Explore potential markets apart from the U.S.
It is wise to build stronger trade network overseas other than U.S. to avoid risk. For examples, trial spots of marketing can be set in Mid-east districts, Africa, and Latin-America, which statistics suggest have witnessed a growing demand for tires in recent years. On the other hand, attention should also be paid to the potential market inside China. In fact, pioneers such as “Huanghai Rubber” have seen the opportunity in the government’s policy called “leading cars to the countryside” and receive a promising return by taking advantage of this.
3. Set up alarm device for trade frictions
When the accusation first took place in the case, although Chinese companies responded actively for their individual interest, they failed to stay united and help each other to find a way out in the absence of a guild. Certain firms went helpless in face of the unfavorable