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MONIKA DWIPARASWANI / 1200963620
INTERNATIONAL MARKETING INDIVIDUAL ASSIGNMENT
CASE 8-1 ASIAN SHOE EXPORTS TO EUROPE : THE ASSIGNMENT
BRIEF SUMMARY
EU regulates antidumping to China and Vietnam’s shoes product just because the importer from China and Vietnam sold their products in cheaper price than EU local product and also cheaper than the products tht being sold in home countries itself, China and Vietnam (dumping). In EU point of view, China and Vietnam are nonmarket economies which means that those two countries domestic prices are artificial.According to financial times, anti dumping usually used in large scale business and capital intensive like steel and in this context, shoes making is not one of those.
Shoes are not the only product that protected by anti dumping in EU. In 2005, bicycle industry also being protected by anti dumping against China and Vietnam products. Some observers think that it was unfair to combine Vietnamess and Chinesse product in the same trade suit but in other hand, European comission conclude that Vietnam and China bicycle have same type and distribution.
The anti dumping causes low import shoes product from China and Vietnam and it become oppurtunity to other country to enter the market since EU consists of lots of countries and consumers.
CASE 8 – 1 DISCUSSION QUESTION
1. When tariffs are imposed on European imports of shoes from China and Vietnam, who stands to gain? Who stands to lose?
In the situation when tariffs are imposed against China and Vietnam, EU countries will get more gain because if China and Vietnam still want to enter EU’s market, they must pay high tariff to EU government which means, high income for EU. In addition, the situation can also give advantage for other country such as Indonesia to enter the market because EU not imposed anti dumping to Indonesian product, yet.
Surely, the situation will make China and Vietnam go into collapse because they must pay high tariff with uncertain
INTERNATIONAL MARKETING INDIVIDUAL ASSIGNMENT
CASE 8-1 ASIAN SHOE EXPORTS TO EUROPE : THE ASSIGNMENT
BRIEF SUMMARY
EU regulates antidumping to China and Vietnam’s shoes product just because the importer from China and Vietnam sold their products in cheaper price than EU local product and also cheaper than the products tht being sold in home countries itself, China and Vietnam (dumping). In EU point of view, China and Vietnam are nonmarket economies which means that those two countries domestic prices are artificial.According to financial times, anti dumping usually used in large scale business and capital intensive like steel and in this context, shoes making is not one of those.
Shoes are not the only product that protected by anti dumping in EU. In 2005, bicycle industry also being protected by anti dumping against China and Vietnam products. Some observers think that it was unfair to combine Vietnamess and Chinesse product in the same trade suit but in other hand, European comission conclude that Vietnam and China bicycle have same type and distribution.
The anti dumping causes low import shoes product from China and Vietnam and it become oppurtunity to other country to enter the market since EU consists of lots of countries and consumers.
CASE 8 – 1 DISCUSSION QUESTION
1. When tariffs are imposed on European imports of shoes from China and Vietnam, who stands to gain? Who stands to lose?
In the situation when tariffs are imposed against China and Vietnam, EU countries will get more gain because if China and Vietnam still want to enter EU’s market, they must pay high tariff to EU government which means, high income for EU. In addition, the situation can also give advantage for other country such as Indonesia to enter the market because EU not imposed anti dumping to Indonesian product, yet.
Surely, the situation will make China and Vietnam go into collapse because they must pay high tariff with uncertain