Question

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.

1 year ago - 1 answers

Best Answer

Chosen by Asker

For the selling country
More employment/income/taxes
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
Capacity.
Hope this helps

Good luck

1 year ago