file an antidumping case or not
One Ethics: Whether file an antidumping case against leading foreign rivals
As a CEO in the United States, though I am concerned about the possibly devastating effects of foreign imports, I will not tend to file an antidumping case against leading foreign rivals. The reason is the disadvantages of setting an antidumping case overweigh the advantages in the long run.
The advantages of antidumping cannot be ignored. Antidumping laws definitely set a benchmark for foreign companies to behave ethically. More specifically, antidumping laws prevent foreign producers from dumping their products on domestic markets at abnormally low prices by punishing them through several measures. From the firm-based consideration, there are two benefits of filing an antidumping case. First, firms can set a higher entry barrier for those leading foreign rivals so that they can protect their vested interests as well as maintain the market position. Then, firms who set an antidumping case may build a strong network with local government, as the government can gain the higher tariff against foreign rivals through antidumping laws indirectly.
However, the disadvantages of antidumping are much more than the advantages to some extent. First and foremost, as filing an antidumping case takes amount of time and energy, it will distract firms from its goals and objects thus weaken the overall strengths of the company. If firms concentrated on its main market intentions rather than setting an antidumping case, it would be more efficient in achieving its own goal. Second, even if the firm wins the antidumping case, maybe it will lose some sales volume. This is because with the higher price of imports setting by tariff of governments, the price of domestic products also goes up. When customers have a high price sensitive, they choose not to buy certain products and thus the sales volume of the certain firm can be affected. Last but not least, the war of antidumping can destroy the good
As a CEO in the United States, though I am concerned about the possibly devastating effects of foreign imports, I will not tend to file an antidumping case against leading foreign rivals. The reason is the disadvantages of setting an antidumping case overweigh the advantages in the long run.
The advantages of antidumping cannot be ignored. Antidumping laws definitely set a benchmark for foreign companies to behave ethically. More specifically, antidumping laws prevent foreign producers from dumping their products on domestic markets at abnormally low prices by punishing them through several measures. From the firm-based consideration, there are two benefits of filing an antidumping case. First, firms can set a higher entry barrier for those leading foreign rivals so that they can protect their vested interests as well as maintain the market position. Then, firms who set an antidumping case may build a strong network with local government, as the government can gain the higher tariff against foreign rivals through antidumping laws indirectly.
However, the disadvantages of antidumping are much more than the advantages to some extent. First and foremost, as filing an antidumping case takes amount of time and energy, it will distract firms from its goals and objects thus weaken the overall strengths of the company. If firms concentrated on its main market intentions rather than setting an antidumping case, it would be more efficient in achieving its own goal. Second, even if the firm wins the antidumping case, maybe it will lose some sales volume. This is because with the higher price of imports setting by tariff of governments, the price of domestic products also goes up. When customers have a high price sensitive, they choose not to buy certain products and thus the sales volume of the certain firm can be affected. Last but not least, the war of antidumping can destroy the good