CASE STUDIES

Case Studies



Case 1.1, Chapter 1, Made in the U.S.A.-Dumped in Brazil, Africa, 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?

Dumping is a trade practice prohibited and considered unfair. The use of “dumping” is pretty common to increase the profits by the manufacturers and producers in the United States of America. It is an unethical as well as a lethal act towards the humanity. Irrespective of the fact, whether any law is broken or not, dumping is unethical as it is a destructive act not just in terms of economical factor. As far as any moral considerations are concerned regarding the dumping of products outside America it is completely immoral and there are no moral considerations that support this unethical and inhuman activity (Young, 2009). The law of United States of America sees every human in equal terms without any disregards and discrimination and the American people believe in creating “synergy” instead of exploiting others in order to just make profit for their own.

Manufacturers and producers that dump products abroad are motivated by profit, and the hope of avoiding financial losses resulting from having to withdraw a product from the U.S. market. Some companies see dumping as a last resort in order to ensure sustainability and avoid millions of dollars in losses. Dumping is an issue of equity/ justice; individual governments are free to establish their own standards of public health and safety. In some cases, having risky products is still better than nothing at all. It is not our government's responsibility to weigh out the burdens and benefits for other countries (Laird, 2000). Foreign countries should be free to decide for themselves whether benefits of products are worth the risk. In Third World countries, almost any birth control device is preferable to none at all due to the high rate of dying in childbirth.

In international trade, dumping is the act of selling in another country at a lower price than that prevailing in the country of origin of the company. Dumping is an unfair practice in international trade is that a product introduced into the commerce of another country at less than its value in the country of origin, in the course of trade. From this definition, it is necessary to explain each of the concepts that compose it, namely the export price, normal value and trade. Dumping the products coming from outside, can damage the domestic industry producing a like which you enter (Young, 2009). So if, they got to try these three points, namely the existence of dumping, injury and causal link between these two elements, domestic producers have at their disposal a backup mechanism: making anti-dumping duties imposed products entering under such conditions.

The term has a negative connotation, but advocates of the free market are "dumping" as beneficial for consumers and believe that the mechanisms protectionist to avoid negative ...