Week One Case Studies|
Case Study 1.1, Case Study 1.2|
Case Study 1.1: Made in the U.S.A.-Dumped in Brazil, Africa, and Iraq... Question #4: If no law is broken, is there anything wrong with dumping? If so, when is it wrong and why? Do any moral considerations support dumping products overseas when this violates U.S. law? Case Study 1.2: The A7D Affair Question #4: Do you think Vandivier was wrong to work up the qualification report? Explain the moral principle or principles that underlie your judgment. |
Case Study #1
“Dumping is a term apparently coined by Mother Jones magazine to refer to the practice of exporting to other countries products that have been banned or declared hazardous in the United States (Shaw, 2012).” The question is; if no law is broke, is there anything wrong with dumping? My answer would be that there is no real right or wrong. There seems to be many stipulations, when it comes to dumping, especially in multimarket and industries that deal with trades. First, we must consider why dumping takes place. “A wide array of situations can give rise to dumping. These include price discrimination, divergent market structures at home and abroad, multimarket oligopolistic interaction, entry deterrence strategy, predatory behavior, cyclical fluctuations, competitive selection of most productive firms, anticipation of future restrictions, and other factors (Rivera-Batiz & Oliva, 2003) .” Models of dumping assume that some form of market division delays goods and prevents the law of one price from holding. Other than having considerations for dumping there are also anti-dumping laws that are in place. Antidumping policies have three main effects. “First, they benefit domestic firms because the...