Trade Barriers - Ways and Effects on Protecting Domestic Labour Markets from Dumping
Trade Barriers
Ways and effects on protecting domestic labour markets from dumping
International Business and Social Sciences
WS11/12
Labour Market and
Human Resource
Management
International Labour
Policy
Ways and effects on protecting domestic labour markets from dumping
With the grow of international trade in our markets, the degree and the amount of competition has increased tremendously in our domestic labour markets. The pressure in our domestic markets are higher than ever before because of the grow of international competitors. Also the actions processes of competitors to dominate and to win market share for making more profit have developed a lot. ‘Unfair competition‘,
‘Antitrust acts‘ or ‘Price dumping acts‘ occurred. Especially the dumping affairs have worried many domestic companies because they had troubles to sell their products for the original domestic price. If a company charges a lower price in the exporting/ foreign country than in the domestic country we define this as dumping and international price discrimination. Because the share of exports of these firms is usually lesser than the domestic demand, they try to capture on this way the foreign market. This is called short-term predatory pricing strategy which should drive competitors out of the market. It is a short-term strategy because once domestic firms are forced and wiped out of industry, and market, it is difficult for them to restart what gives the exporting firm the opportunity of a monopoly power in the foreign market.1 2
In the 19th century the first time an industry (European Sugar Industry) has appealed to their respective government for protection against sugar being dumped at unfairly low prices. After the first formal agreement on antidumping has been made in 1902
Canada adopted the first anti-dumping law in 1904 followed by the European countries and then the US in 1916. These legislative texts formed later (1947) the basis for the
Ways and effects on protecting domestic labour markets from dumping
International Business and Social Sciences
WS11/12
Labour Market and
Human Resource
Management
International Labour
Policy
Ways and effects on protecting domestic labour markets from dumping
With the grow of international trade in our markets, the degree and the amount of competition has increased tremendously in our domestic labour markets. The pressure in our domestic markets are higher than ever before because of the grow of international competitors. Also the actions processes of competitors to dominate and to win market share for making more profit have developed a lot. ‘Unfair competition‘,
‘Antitrust acts‘ or ‘Price dumping acts‘ occurred. Especially the dumping affairs have worried many domestic companies because they had troubles to sell their products for the original domestic price. If a company charges a lower price in the exporting/ foreign country than in the domestic country we define this as dumping and international price discrimination. Because the share of exports of these firms is usually lesser than the domestic demand, they try to capture on this way the foreign market. This is called short-term predatory pricing strategy which should drive competitors out of the market. It is a short-term strategy because once domestic firms are forced and wiped out of industry, and market, it is difficult for them to restart what gives the exporting firm the opportunity of a monopoly power in the foreign market.1 2
In the 19th century the first time an industry (European Sugar Industry) has appealed to their respective government for protection against sugar being dumped at unfairly low prices. After the first formal agreement on antidumping has been made in 1902
Canada adopted the first anti-dumping law in 1904 followed by the European countries and then the US in 1916. These legislative texts formed later (1947) the basis for the