INTERNATIONAL BUSINESS

PRESENTATION ON INTERNATIONAL TRADE AND ANTI-DUMPING

POLICY

GROUP 11 SECTION “B”

NAME USN NO
Siddeshwar CMS20MBA102
Yuvaraj CMS20MBA120
Karthiyaeni CMS20MBA039
Hari Priya CMS20MBA062
Chandra Prakash CMS20MBA024

Date - 23/05/2021
International Trade :-

• Trade between two or more countries is called foreign trade or international trade. This involves the exchange
of goods and services between the citizens of two countries. When citizens of one country exchange goods and
services with the citizens of another country, it is called foreign trade.
• “The aim of international trade is to increase production and to raise the standard of living of the people.
International trade helps citizens of one nation to consume and enjoy the possession of goods produced in
some other nation.”

International Trade are classified into three ways :-

• Import Trade: The inflow of goods in a country is called import trade.

• Export Trade: The outflow of goods from a country is called export trade.
• Entrepot Trade: Many times goods are imported for the purpose of re-export after some processing
operations. This is called entrepot trade.
 Role and Importance of International Trade :

• Division of labor and specialization

• Optimum allocation and utilization of resources
• Raises Standard of Living of the people
• Generate employment opportunities
• Equality of prices
• Ensures quality and standard goods
• Facilitate economic development
• To improve quality of local products
• Availability of multiple choices
Benefits and Barriers of International Trade:-

Benefits Barriers

Efficient Allocation and Better Utilization Cultural and social barriers

of Resources

Variety of Goods Available for Political barriers

Consumption
Promotes Efficiency in Production Tariffs and trade restrictions

Utilization of Surplus Produce Standards

Consumption at Cheaper Cost Boycotts

More Employment Anti-dumping Penalties

Reduces Trade Fluctuations Monetary Barriers

The main advantages and disadvantages of International Trade are as follows:

Advantages Disadvantages

Optimal use of natural resources Exhaustion of Resources

Availability of all types of goods Effect on Domestic Industries

Advantages of large-scale Effect on Consumption Habits

Production Times of Emergency

Stability in prices Economic Dependence

Increase in efficiency Political Dependence

Promotes Competition Import of Harmful Goods

Fall of Prices Mis-utilisation of Natural

Resources
Dumping :-

“ Dumping is a situation of international price discrimination, where the price of a product when sold to the
importing country is less than the price of the same product when sold in the market of the exporting
country .”

Why dumping takes places

• As a short-term predatory pricing strategy to drive competitors out of the market.

• As a result of market intervention or state subsidies that enable companies to artificially lower their prices.
Anti-Dumping :-
• It is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect.
• Re-establish fair trade.
• The use of anti dumping measure as an instrument of fair competition is permitted by the WTO.
• It provides relief to the domestic industry against the injury caused by dumping.

where does anti-dumping stand today ?

• Anti-dumping measures taken by WTO members have increased from 129 in 1994 to 208 in 2008; 83%.
• New users : Argentina, India, Brazil, South Africa. 
• Traditional users : Canada, U.S., European Union, Australia, Mexico.
• Most affected industries : Metal, Chemical, plastic, textiles, machinery and equipment, agriculture and food.
 Total Anti- Dumping Measures
300

250

200

150

100

50

0
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

All users New users Traditional users

Most Aff ected Sectors

Source: WTO Secretariat, Rules Division,

Anti-dumping Measures Database.
Metal Chemical Plastic Textiles M&E A&F Others
Stakeholders

Against In Favour
Consumers Importing country currently
protected industries
Exporters Importing country Labor Unions
Economists
Regional Agreements (NAFTA)

Impact of Anti-dumping

Pros
Prevents Monopolies
Protects Vulnerable Industries
Allows Firms to Compete
Preserves Jobs
Cons
Against Free Trade Concept
Trade Barrier – Lowers Economic
Growth
Distorts the Market
Protects Firms from Competition
 CONCLUSION

• In conclusion it can be said that, international trade leads to economic growth provided the policy
measures & economic infrastructure are accommodative enough to cope with the changes in social
and financial scenario that result from it.
• In order to face the cross border competition challenges, a well functioning, national competition
regime is insufficient.
• International trade opens up the opportunity for develop countries whereby it increases their
capacity to produce and acquire goods. It should however be controlled so as to avoid the closure
of some local companies.
• It can be agreed that overall the anti-dumping policy of India helps to check unwanted imports and
hence might qualify as “effective”.
• Do little when it comes to the trade diversion that takes place during the initiation of an anti-
dumping case against a certain country.
THANK YOU !