Case study 3.2: Don’t dump on us!
Case study 3.2: Don’t dump on us! (Page 149 of text)
1. Government should have responsibilities when they examine and accept tenders for goods and services. They should need to have regulations for those foreign companies that are entering a local market and set a certain price limit. This is done to prevent a serious problem that might occur to local companies such as loss of profitability and therefore it might bring a healthy competition between both parties. They could try to support local performance by subsidizing local companies which could help local companies to competing with EU company’s local distributor. Besides that, they could also try to give rewards to local companies so product with better quality could be produced and thereby it could make a difference between local’s and EU company’s products.
2. No, shared tender is not an ethical position to take because the action that EU company’s local distributor took has depressed the local company as the price that EU company quoted has led to the disastrous situation where local company need to drop the price even lower in order to ompete with EU company’s local distributor. In addition, the actual reason for EU company to dump its product is to widen its market however price dumping has local company
3. It was not ethical of the local distributor of the EU company to quote price differences in their advertising brochure because reader will not only compare the different features of the new products but also the price of the products of the two companies, this will cause the local company dropped its prices 2 per cent even though they actually had a rise of 7.5 per cent to make and sell the product and the local company might meet problems in balancing the selling price and the production price so that its product still survive in the market. This also might lead the local company to continue producing product with lower price but we can see that lower price product have a lot of shortage or the
1. Government should have responsibilities when they examine and accept tenders for goods and services. They should need to have regulations for those foreign companies that are entering a local market and set a certain price limit. This is done to prevent a serious problem that might occur to local companies such as loss of profitability and therefore it might bring a healthy competition between both parties. They could try to support local performance by subsidizing local companies which could help local companies to competing with EU company’s local distributor. Besides that, they could also try to give rewards to local companies so product with better quality could be produced and thereby it could make a difference between local’s and EU company’s products.
2. No, shared tender is not an ethical position to take because the action that EU company’s local distributor took has depressed the local company as the price that EU company quoted has led to the disastrous situation where local company need to drop the price even lower in order to ompete with EU company’s local distributor. In addition, the actual reason for EU company to dump its product is to widen its market however price dumping has local company
3. It was not ethical of the local distributor of the EU company to quote price differences in their advertising brochure because reader will not only compare the different features of the new products but also the price of the products of the two companies, this will cause the local company dropped its prices 2 per cent even though they actually had a rise of 7.5 per cent to make and sell the product and the local company might meet problems in balancing the selling price and the production price so that its product still survive in the market. This also might lead the local company to continue producing product with lower price but we can see that lower price product have a lot of shortage or the