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BUSINESS ISSUE, HELP PLEASE?
what is the advantages and disadvantages of dumping to the importing and exporting countries?
I just know some, like increase choice of products, high standard of living is the advantages,
and country may experience a lost of expand profit is the disadvantages, but I want more, please help.
For the selling country
Increase economy of scale and specialization of mfgs
Increased rev to mfg bcuz they get a higher price in domestic mkt and more rev from foreign mkts
For the buying country -
More prod choice as you mentioned
But also unfair competition for the local mfg.
Lose of jobs, crippling mfg ability and r&D is reduced becuz there is no money to be made.
As a general rule though dumping seems to be good for both sides most countries prohibit dumping. If a local mfg can prove dumping they will demand tariff levied so to equalize the playing field. Most gov are protective of industry and want to increase
Hope this helps