Unfair Competition.1.1

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Unfair competition

Ling

Pre-MBA
Brant Williams

September 23, 2012

In this society, the development of economic is rapid. So competition becomes inevitable. It plays a regulatory function in balancing demand and supply. In this case, unfair competition arises at the historic moment. Unfair competition means unjust and often illegal attempt to gain unfair competitive advantage through false, fraudulent, or unethical commercial conduct. Examples include below-cost selling, counterfeiting or imitation, dumping, misleading advertising, rumor mongering, trademark or trade secret infringement. There is no doubt that these actions will bring loss to consumer. But the victims not only consumer but also include the production of value chain that has transverse relation and the suppliers that has longitudinal relation. So every country take the corresponding measures to curb unfair competition behavior. Making Anti Unfair Competition Laws is the most important way to restrain the unfair competition acts, but the construction of china’s competition legal system starts late. So compared with other countries we are lack of experience, both in legislation or in law enforcement. In addition to ordinary enterprises acts of unfair competition, it mainly divided into state-owned enterprises vs private enterprises and domestic enterprises vs foreign enterprises. The unfair competition between the state-owned enterprises and the private enterprises is a important problem. It has aroused the domestic and foreign experts attention. We can’t deny the state-owned enterprise has its necessity. It can be used to remedy the market defect or as the development strategic national industry. But the state have to cancel the unfair competition between the state-owned enterprises and private enterprises. Unfortunately, we have not, like industry access, lending discrimination, the use of national capital and market dispute and so on.( according to Zhao H.Z. 2012. May). In addition, Mazzolini Offers some types that SOEs do indeed enjoy special advantages over private firms: First, they are under less pressure to pay dividends. Second, they have implicit government backing and can thus raise debt capital more readily. Third, they have preferential access to state financing. Fourth, they receive more or less disguised subsidies or outright grants. Fifth, they have quasi-captive markets at home. Sixth, they enjoy preferential procurement conditions. (according to Mazzolini, R ,1980). Some claim that such companies enjoy unfair advantages over private business and that they will eventually undermine the market position of private sector enterprises in many areas. All enterprises need to stand on the same starting line, to fair competition. Other form about the acts of unfair competition occurs between domestic enterprises and foreign enterprises. This problem deserve more and more concern in the recently. It is mainly reflected in the dumping. "dumping" is a kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market, or in quantities that cannot be explained through normal market competition. For dumping, the world pay wide attention and many countries have adopted corresponding measures. Beginning in 1980, the use of antidumping duties—special import tariffs that are used to raise the price of “dumped”goods—came to be a common practice in conducting trade policy among the U.S., the European Union (EU), Canada, and Australia. While only a handful of antidumping cases were initiated worldwide in the 1950s, 1960s, and 1970s, more than 1,600 cases were filed during the 1980s. Of these, the vast majority were filed by the tradition-al users—the U.S., the EU, Canada, and Australia. However, prior to the advent of the World Trade Organization (WTO) in 1995, the use of antidumping...
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