《托马斯a普格尔国际贸易英语chap011》由会员分享，可在线阅读，更多相关《托马斯a普格尔国际贸易英语chap011（33页珍藏版）》请在金锄头文库上搜索。
1、Chapter 11,Pushing Exports,Outline of chapter 11,Dumping Export subsidies,Dumping Definition Types Reacting to dumping Actual antidumping policies Proposal for reform,Dumping Selling exports at a price that is “too low,” a price below “normal value” or “fair market value.” The export price is lower
2、than the price charged for comparable domestic sales in the home market of the exporter. The export price is lower than the full unit cost (including a profit margin).,Types Predatory dumping A low export price used by the exporting firm with the intention to drive its competitors in the importing c
3、ountry out of business Cyclical dumping a low export price that results from an industry downturn or recession in which demand is unusually low. Seasonal dumping A low export price that is intended to sell off excess inventories of a producion Persistent dumping A low export price that results from
4、the exporting firm practicing price discrimination between segmented national markets, with the export price being low because the import market has the higher price elasticity of demand (perhaps due to more intense competition in the importing countrys market).,Figure 11.1 - Persistent Dumping,What
5、 condition do you think for persistent dumping to work effectively? It has less monopoly in the foreign market than it has in its home market Buyers in the home country cannot avoid the high home prices by buying the good abroad and importing it cheaply.,Reacting to dumping Why the importing country
6、 always complains about the cheap product in their country? How frequently foreign firms use predatory dumping? recent research suggests that no more than 5% of all cases of alleged dumping in the USA, EU,canada and Mexico.,Actual antidumping policies The WTO rules permit countries to retaliate agai
7、nst dumping, if the dumping injures domestic import-competing producers. Some criteria for WTO rules to impose antidumping duty for importing countries Factserious or potential injury-causality,Figure 11.2 - Top Ten Initiators of Anti-Dumping Cases,Some proposals for reform Antidumping actions could
8、 be limited to situations in which predatory dumping is plausible The injury standard could be expanded to require that weight be given to consumers and users of the product Antidumping policy could be replaced by more active use of safeguard policy safeguard policy : a government policy of temporar
9、y import protection imposed in response to a sudden import increase that causes injury to domestic producers of this product.,Export subsidies Definition The economic effect of export subsidies. WTO rules on subsidies Should the importing country impose countervailing duties? Strategic export subsid
10、ies could be good,Export subsidy Government financial assistance to firms based on how much of a product the firms export. Ways of export subsidy,The economic effect of export subsidies in the following three cases Exportable product small exporting country Exportable product large exporting country
11、 Switching an importable product into an exportable product,Exportable product small exporting country Figure 11.3 What economic effect ?,Figure 11.3 - Export Subsidy, Small Country, Exportable Product,The economic effect in small exporting country The export subsidy has increase exports and product
12、ion of this product The export subsidy reduced the net national well-being of the exporting country -(f+h),Exportable product large exporting country Figure 11.4 Whats the economic effect?,Figure 11.4 - Export Subsidy, Large Country, Exportable Product,The economic effect in large exporting country
13、Producer surplus e+f+g Consumer surplus -(e+f) Government subsidy -(f+g+h+i+j+k+l+m) Net national well being -(f+h+i+j+k+l+m),Switching an importable product into an exportable product Figure 11.5,Figure 11.5 An Export Subsidy Turns an Importable Product into an Export,WTO rules on subsidies Subsidi
14、es linked directly to exporting are prohibited, except export subdides used by the lowest-income developing countries Subsidies that are not linked directly to exporting but still have an impact on exports are actionable Some subsidies are nonactionable, such as R&D, assistance in meeting environmen
15、tal regulations,Should the importing coutry impose countervailing duties? Free trade Export subsidy and no counterfailing duties Who is effectively paying the countervailing duty?,Free trade The whole World can get the most efficiency.,Figure 11.6 A Foreign Export Subsidy and a Countervailing Duty,C
16、ompring with Free trade Export subsidy causes too much steel trade. When importing country imposes a countervailing duty, the world returns to the same price. This makes good senses for world efficiency.,Export subsidy and no countervailing duty Contervailing duty is bad for the country imposing it but good for the whole world. The net national loses w+z when importing country imposes countervailing duty. But for the whole world, it is back to the world efficienc
