When there
is war or a dispute between industrialized or developing nations, due to an increase
or decrease on tariff, the most affected are the companies who depends on their
daily import/export of products.
On this
case, we have the example of China Chicken Market vs. U.S Car Manufacture Industry
were both industries have been harmed due to a competition of gaining market
share, power and revenue.
We have to
understand the value of antidumping as a process that protects domestic
markets. We usually see that China has mayor impact in U.S. market and this is
because of a lower cost of labor of their products, and consequently, a huge
increase in the final cost to U.S. consumer. This in when antidumping processes
must be applied in order to protect domestic producers and consumers.
No nation
can live in economic isolation; there must be a multilateral negotiation in
order to reduce any percussions and increases on tariffs. Both countries, China
and U.S., have an absolute advantage on their productions, and they must
consider the best option for their consumers and no practices that affect
internal consumption should be implemented., market share and revenue can also
be obtained this way.
Where there
are multilateral agreements between nations and these are respected and applied
correctly without utilizing dumping actions, countries will increase their
profits by taking completely absolute and/or comparative advantage of their trades.
No comments:
Post a Comment