托马斯A普格尔国际贸易英语chap011.ppt

Chapter 11 Pushing Exports Outline of chapter 11 Dumping Export subsidies Dumping Definition Types Reacting to dumping Actual antidumping policies Proposal for reform Dumping Selling exports at a price that is “too low,” a price below “normal value” or “fair market value.” The export price is lower than the price charged for comparable domestic sales in the home market of the exporter. The export price is lower than the full unit cost (including a profit margin). Types Predatory dumping A low export price used by the exporting firm with the intention to drive its competitors in the importing country out of business Cyclical dumping a low export price that results from an industry downturn or recession in which demand is unusually low. Seasonal dumping A low export price that is intended to sell off excess inventories of a producion Persistent dumping A low export price that results from the exporting firm practicing price discrimination between segmented national markets, with the export price being low because the import market has the higher price elasticity of demand (perhaps due to more intense competition in the importing countrys market). Figure 11.1 - Persistent Dumping What condition do you think for persistent dumping to work effectively? It has less monopoly in the foreign market than it has in its home market Buyers in the home country cannot avoid the high home prices by buying the good abroad and importing it cheaply. Reacting to dumping Why the importing country always complains about the cheap product in their country? How frequently foreign firms use predatory dumping? recent research suggests that no more than 5% of all cases of alleged dumping in the USA, EU,canada and Mexico. Actual antidumping policies The WTO rules permit countries to retaliate against dumping, if the dumping injures domestic import-competing producers. Some criteria for WTO rules to impose antidumping duty for importing countries Fact—serious or potential injury-