Down with Dumping

Summary:

The summary of this case study shows down with dumping of products effects to each
countries whereby depends on cultures and values. When dumping attained for
consumers in a country to exports prices as gain, it may result to destroy the trading
partner’s industry, Government subsidies cushion the losses until the target industry is
destroyed. While WTO and the EU oversee anti-dumping measures. It increases
market share for the dumping country's industry. It temporarily lowers prices for
consumers. There is main advantages of dumping and it is selling at an unfairly
competitive lower price. A country subsidizes the exporting businesses to enable them
to sell below cost. Some nation leaders agreed to increase market share in industry and
It may want to create jobs for its residents. It often uses dumping as an attack on its
trading partner's industry. It hopes to put that country's producers out of business and
become the industry leader. The problem with dumping is that it's expensive to
maintain. It can take years of exporting cheap goods to put the competitors out of
business. Meanwhile, the cost of subsidies can add to the export country's sovereign
debt. Moreover retaliation by the trading partner is also a problem. Countries may
impose trade restrictions and tariffs to counteract dumping and that could lead to a
trade war. Lastly, censure by international trade organizations and it includes the World
Trade Organization and the European Union.