StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The problem of dumping in world trade and measures that are taken to stop it - Dissertation Example

Cite this document
Summary
The problem of dumping in world trade and measures that are taken to stop it.In the recent past, the issue of international dumping has seen fundamental moments. Indeed dumping is one of the hotly debated issues in the global trade. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.2% of users find it useful
The problem of dumping in world trade and measures that are taken to stop it
Read Text Preview

Extract of sample "The problem of dumping in world trade and measures that are taken to stop it"

Download file to see previous pages

Measures that have been taken to stop dumping have always been and are still used as most significant devices by countries as a protection against imports. Measures to stop dumping tend to be supported over other trade remedies because unlike safeguard measures, they provide the opportunity for a selective approach. According to, the process used in anti-dumping legislations can give rise to increased dumping margins and actions unrelated to the actual market condition. This paper explains the concept of export dumping as well as the various forms it takes in the global trade.

The paper details how Anti- Dumping (AD) legislations come into been and their relationship to article VI of the General Agreement on Tariffs and Trade (GATT). The paper will further discuss WTO anti-dumping measures together with the procedural issues in anti-dumping cases. Additionally, it will elucidate the reason behind the practices of export dumping. Moreover, the paper gives the reasons why civilized and uncivilized nations have special interests in the AD processes especially in the global trade.

Finally, the paper will provide an explanation as to why AD legislation is perceived as a problem in the global trade. Introduction Definition of dumping In the global market arena export dumping can be regarded as selling of products/goods at price which is less than the domestic price normally as exports in the world trade.2 Similarly, the practice of selling at value below cost used to produce them is also referred to as dumping. Usually, primary reason behind export dumping is to drive out competitors from the market.

Additionally, 3purports that dumping is also done to get rid of the surplus of local trade. Some traders also resort to dumping when their products are unacceptable for the local market. In economic perspective, dumping is viewed as a form of predatory pricing whereby the term is frequently used in the context of global trade legislations.4 Under this backdrop, dumping is regarded as an act whereby a manufacturer in a given country exports goods to an overseas country or countries at price below the one charges at its domestic market for similar product/s.

Dumping huge amount of goods or products into a market will significantly reduce price of goods that are priced at the market place as it introduces goods priced below the market price. Supporters of free market implicate it negatively as they perceive it as a form of protectionism. Overall, dumping has various definitions from various contexts but it is widely defined as selling of products in a foreign market at a price below the one a given country charges for the same products in the home market.

5 In other words, it is the selling at lower than fair value. According to,6 WTO and the GATT condemn the practice of export dumping at situations where it effects injures the economy of a country into which the goods are dumped although it does not prohibit it. Some countries take control of specific technology or method of production in the world trade. As a consequence, these countries monopolize these products or technologies. Such kinds of monopolies are also referred to as international dumping.

In order to capture foreign markets for their goods or technologies, such countries sell their goods at foreign markets at a price below the one they charge in their domestic market. This act is normally adopted by producers who have monopolies in their local markets whereby the need for their goods is less elastic than in world trade.7 Types of Dumping In the world trade, there are generally three forms of dumping

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The problem of dumping in world trade and measures that are taken to Dissertation”, n.d.)
Retrieved de https://studentshare.org/macro-microeconomics/1390339-the-problem-of-dumping-in-world-trade-and-measures
(The Problem of Dumping in World Trade and Measures That Are Taken to Dissertation)
https://studentshare.org/macro-microeconomics/1390339-the-problem-of-dumping-in-world-trade-and-measures.
“The Problem of Dumping in World Trade and Measures That Are Taken to Dissertation”, n.d. https://studentshare.org/macro-microeconomics/1390339-the-problem-of-dumping-in-world-trade-and-measures.
  • Cited: 0 times

CHECK THESE SAMPLES OF The problem of dumping in world trade and measures that are taken to stop it

Analyse and model engineering situations and solve problems using Ordinary differential equations

According to Newton's Law of Cooling with which the problem statement proves to be consistent, a first-order differential equation may be set up as follows: = -kT where ‘k' refers to the constant of proportionality.... Complete Task 1 – Learning Outcome 4.... Analyse engineering problems and formulate mathematical model using first order differential equations 1....
10 Pages (2500 words) Math Problem

Solving Mathematical Problems

hellip; This pattern could make it much easier to solve the problem for even larger numbers of people.... If I was in a room with 4 other people and wanted to shake everyone's hand, four handshakes would happen.... It gets trickier though if I wanted to know how many handshakes there would be if everyone wanted to shake everyone else's hand once....
3 Pages (750 words) Math Problem

Automation Tools Math Problem

VBA code might be created within Excel by recording a macro.... Even so it often proves necessary to resort to hand coding.... Provide three examples where hand coding rather than recording a macro is required to accomplish a particular task.... You might wish to consider for example the use of variables or how 'selection' and 'iteration' are accomplished....
11 Pages (2750 words) Math Problem

Analysis of Next UK Cloth

… Analysis of ‘Next' UK clothGroup turnover increased 9% to £3,106mThe development of our store portfolio and Directory customer base has been the main rivers of growth” Earnings per share increased by 6% to 127.... p• Dividends for the year increased 7% Analysis of ‘Next' UK clothGroup turnover increased 9% to £3,106mThe development of our store portfolio and Directory customer base has been the main rivers of growth” Earnings per share increased by 6% to 127....
29 Pages (7250 words) Math Problem

Problem-Solving and Telephone Survey

… Professor Madhu KhannaACE 411:Environment and DevelopmentApril 25, 2007Homework #4Question #1a.... A telephone survey is an appropriate vehicle to know the pulse of the people of Dullsville regarding the benefit of the project.... Advantages of Telephone Professor Madhu KhannaACE 411:Environment and DevelopmentApril 25, 2007Homework #4Question #1a....
4 Pages (1000 words) Math Problem

Problem Solving and Analysis

According to world Meteorological Organisation (WMO) (2012), this means that Brisbane residents can prepare in advance to handle the short rains of August since its experience is not expected to deviate so much from the previous periods.... … Part ALeaning goalsHow to incorporate the goalUnderstanding how the team worksForming, norming, storming, and performing....
15 Pages (3750 words) Math Problem

Design of a Car Suspension System

In designing suspension systems these factors should be taken into consideration to improve the convertibility of drivers and passengers of vehicles.... The initial stiffness constant is taken as 3000 N/m(K), the damping constant of the suspension system as 30 N.... … The paper “Design of a Car Suspension System - Mathematical Modelling, the Cut-Off Frequency Related to the Natural Frequency”  is an engrossing variant of a math problem on mathematics....
8 Pages (2000 words) Math Problem

Problem Solving of Computer Networking

Concept of polling and its effect on network congestion and saturationThe switched Ethernet was developed to cub the problem of increased load in a network system that would often result to saturation in a classic Ethernet system.... Concept of polling and its effect on network congestion and saturationThe switched Ethernet was developed to cub the problem of increased load in a network system that would often result to saturation in a classic Ethernet system....
8 Pages (2000 words) Math Problem
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us