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"Double-edged sword" effect of the anti-dumping
* : * : * : 2012-09-24 * : 0
"Double-edged sword" effect of the anti-dumping
* Source: * Author: * Time: 2012-09-24 *: 0
"Double-edged sword" effect of the anti-dumping

In the areas of economics, dumping is called (price discrimination), U.S. economist for dumping summarized the definition of a rich modern colors, he thinks "dumping price discrimination is the same kind of products on the markets of different countries"

Article VI of the General Agreement on Tariffs and Trade "(GATT) the dumping is defined as:" the product of the one country, lower than the normal value method to enter the market of another country, as a result of the cause has been established within the territory of a State party to an industrial substantial damage or have a substantial threat of injury, or have a substantial obstacle to the construction of a domestic product, to this dumping should be condemned. "

Accordingly, the legal dumping by three conditions: 1. Products price lower than the normal value or fair value sales. This price dumping caused to the importing country's relevant damage. (Where damage including material injury, threat of material injury and material retardation, means of production caused by damage to the entire industry of the importing country the same product rather than a few of the importing country or a manufacturer. 3 dumping acts as a non-normal trading behavior, academic circles the consequences can be described as the eyes of the beholder, the wise see wisdom.

From the negative effects of view
First, the impact of dumping on the economy of the importing country. The main findings: (1) a challenge to the domestic industry of the importing countries of similar products. Substantial dumping of foreign products, the production and operation of the importing country of the same or similar products are often forced to substantial price reduction or converting even annexed. (2) the possible formation damage the interests of the consumers of the importing country. Because dumping motives are often crowded competitors of the importing country cross reuse monopoly position to raise prices. Therefore, the ultimate victims or consumers. (3) The manufacturer of the importing country loses the opportunity to expand its market share (4) similar products of the importing country to lose market share (5) to mislead the importing country producers operating decisions, thereby wasting resources.

Second, the impact of dumping on the economy of the country of export. The main findings: (1) due to the dumping providers mostly in domination or monopoly status in their own country, leading to other related companies in the exporting country, especially downstream enterprises have to withstand the high-priced dumping pass. (2) At the same time, pro-consumers of the importing country long-term, this should not enjoy a reasonable consumer rights under the monopoly high prices.

Again, dumping returned to a third country economic impact. This is mainly due to: a third country products into the markets of importing countries the opportunity to participate in fair competition deprived dumped.

In addition to damaging to the national economy, in economic terms, the dumping of political relations between the countries when influential, and sometimes even affect relations between the two countries will become important fuse. With the acceleration of the process of economic globalization, the economic problems in modern international relations become more prominent, a number of countries to carry out anti-dumping investigations, often mixed with many other discriminatory policies, many of the country's anti-dumping laws are formulated for of unfair foreign anti-dumping measures "Terms of bilateral exchanges as an important weight.


Benefits from the dumping of view
1 of the importing country, dumping from a certain sense, it can stimulate and promote the industry of the importing countries, especially the development of backward industrial and monopoly industries.

Consumers in importing countries can enjoy cheap deals to some extent or a certain period. Because not all dumping prices will wantonly high, also a long time to maintain the low price.

Exporting countries, even if the dumping in a monopoly or dominant position in the exporting country, every product dumping also is to open up overseas markets, which will reduce the competitive pressures of the exporting country producers and operators contribute to their development and competition.

4. Should see a very attractive: dumping sell the backlog of products, many operators to achieve economies of scale, and to open up overseas markets, increase market share, grow and develop their own effective way.