China and Vietnam sold Their products
In cheaper price than E local product and also cheaper than the products HTH being sold in home countries itself, China and Vietnam (dumping). In EX. point of view, China and Vietnam are market 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 ELI. In 2005, bicycle industry also being protected by anti dumping against China and Vietnam products. Some observers think that it was unfair to combine Vietnamese and Chinese product In the same trade slut but In other hand, European semicolons conclude that Vietnam and China bicycle have same type and distribution.
The anta mumping causes low Import shoes product from China and Vietnam and It become opportunity to other country to enter the market since E consists of lots of countries and consumers.
Case 8 – discussion question
- 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, E countries will get more gain because if China and Vietnam still want to enter Ex.’s market, they must pay high tariff to E government which means, high Income for ELI. In addition, the situation can also give advantage for other country such as Indonesia to enter the market because E not Imposed ant’ dumping to Indonesian product, yet. Surely, the situation will make China and Vietnam go Into collapse because they must pay high tariff with uncertain profits.
- European policy makers object to the fact that some Asian shoe production is government seized. But as an editorial in the Financial times noted ” If Beijing and Hanoi want to subsidize European consumers to build their shoe collections, let them . Do you agree? I’m not agree with that. In my opinion, government of China and Vietnam have reason why they subsidize shoe production and that reason is to fulfill their people’s need rather than to fulfill other countries people. Penthouse exporting the products to other country can give Income to government but I think It will be better for them to satisfy local people need first and they can satisfy other countries need next.
- Antiquating countries can be described as a form of protectionism. As the global retentions. Is this a positive trend or are such policies likely to prolong the recession? In my opinion, anti dumping can be described as protection to local product against the import one. Local product can help countries to help from crisis because the money flow only happened in one country. I think it is a positive trend and can make a country become more independent and survive from the crisis. If they don’t do antiquating, it can can harm their local product, make them more dependent to other country.