Project description
topic:
“Dumping” is to international economics as “predation” is to antitrust economics: if a foreign firm violates domestic anti-dumping laws, it is selling its product in the domestic market at “unreasonably” low prices, which could “unfairly” hurt domestic competitors. Therefore, one might write a critical literature review on dumping and anti-dumping laws. Do these laws have theoretical credibility? What are the major anti-dumping cases, and what legal decisions were made in these cases? Are the decisions more economic than political?
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As with other topics, one may choose to focus on the anti-dumping laws of one country, or compare the laws of two different countries. One could also compare and contrast the laws and cases of developed countries to those of developing countries. Another possibility is to critically examine only one or two major anti-dumping cases.
Introduction/Motivation:
Accounting to the book “Law and Economics of Contingent Protection in International Trade” views that “Dumping is generally defined as the act of an exporter selling a product in an export market at a price below that which is charged for the same or comparable merchandise in the home market” ( as cited in Bagwell, Bermann, Mavroidis, and Petros, 2010, p.197). As dumping is a predatory practice in the free market trade, one country’s domestic market is affected by this. Once the dumping has been practiced in one industry, the monopoly will happen in the industry, and then the price of the goods, in this industry, eventually increases. The important reason for World Trade Organization (WTO) developing the Anti-Dumping Agreement is to protect one’s domestic market which affected by others’ selling lower price of the goods as same as home goods. The topic of anti-dumping agreements is both economic and policy-oriented. In the economic ground, the outcomes of practicing dumping in foreign and anti-dumping laws help domestic market to against a dumping are critical. On the other hand, anti-dumping agreement can guarantee a country’s domestic market and goods. The country’s home manufactures are protected from the anti-dumping agreements (how the agreement works? would be interesting in the political side).
Tentative outline for paper
Section 1 will start with the introduction of dumping and anti-dumping theories. What the
“dumping” and anti-dumping laws are based on the reviewing of the book of Bagwell
et al. (2010). Which parties are affected by the dumping and how dumping effects a
country’s home market. The groups involved in the anti-dumping agreements. What
the agreement is, and how it will works for protecting one’s home market, against the
country doing dumping in other countries.
Section 2 will review the theoretical literature about the topic of “the antidumping laws”.
The antidumping law is an administered protection policy. There are other administered
protection policies (countervailing duties and escape clauses) are founded. This section
will focus on practicing the antidumping laws, then comparing with others policies, and
will cover the drawbacks and limitations of the policies.
Section 3 will describe some empirical cases of the antidumping laws. A cases in
developed country (United State). A view based on Cohen-Meidan’s (2013) article
“The Heterogeneous Effects of Trade Protection: A Study of US Antidumping Duties
on Portland Cement ”. The article provides a study on US levies antidumping duties
on imported cement products that increasing its domestic prices. Possibly, one more
antidumping law cases in developing countries such as China, India, and Mexico.
Moreover, will compare the differences between the developed and the developing
countries.
Section 4 will discuss the limitations of the cases in section 3. Expending the issues
which could occurs when practicing antidumping laws.
Section 5 will draw a conclusion from the facts in the paper and examine whether the
antidumping laws could protect the domestic prices from the extremely low price of
exports (may lower than the cost of production of goods), or not. This section may
provide some predictions through the study of antidumping laws.

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