An extension of the antitrust laws into the arena of international trade has taken the form of

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An extension of the antitrust laws into the arena of international trade has taken the form of anti-dumping laws, which have been enacted by most Western countries, and which are increasingly being enacted by developing countries. On the surface, most of the anti-dumping laws across the various countries seem to be similar to each other. However, since much of the content of these laws is open to interpretation, the results of these laws could vary significantly. The bottom line for the initiation of any anti-dumping investigation is that if a foreign manufacturer gets an ‘‘undue’’ advantage while selling its products (either through pricing its products higher in other protected markets or through government subsidies) in another country relative to the domestic manufacturer and hurts the domestic industry, the company is resorting to unfair competition and should be penalized for it. While large firms are relatively more aware of the nuances of anti-dumping laws, and have the resources, especially legal ones, to deal with this issue, it is the smaller firms, which often depend on governmental export assistance in various forms, that are the most susceptible to being penalized. One of your friends is planning to start exporting an industrial product to various countries in Europe. To help finance his export endeavor, he plans to utilize concessional export credit provided by the U.S. government to small exporters. This product is highly specialized, and caters to an extremely small niche market. Europe is a large market for this product. There are only two other manufacturers of this product, both based in Europe. One of these manufacturers is a $100-million company, which manufactures various other products besides the product in question. What would be your advice to your friend in terms of the significance of antidumping laws? What specific steps, if any, would you encourage your friend to take, especially in context of his limited financial resources?

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Essentials Of Business Research Methods

ISBN: 9780367196189

4th Edition

Authors: Joe F. Hair, Michael Page, Niek Brunsveld

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