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Title: Essay about Job Losses, Offshoring and Dumping
Description: This essay is about how offshoring to countries that are cheaper to produce in, cause domestic job losses. It also talks about the effects of dumping and what should be done about it. This piece was written for a course in International Business
Description: This essay is about how offshoring to countries that are cheaper to produce in, cause domestic job losses. It also talks about the effects of dumping and what should be done about it. This piece was written for a course in International Business
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Essay about Job Losses And Off Shoring To China &
Dumping On Trade Complaints
Throughout history, globalization has become a very important factor in the
business environment
...
Since the up rise of
technology, it has become significantly easy to trade between almost all
developing and developed countries around the world, allowing businesses to
expand beyond what before only was possible
...
China, that is being
used in many case studies, shows that it is one if not the most used source of
labor and manufacturing has therefore been moved by many companies to there
...
And with the fluctuating economy, especially after the
2008 economy collapse, consumer spending decreased dramatically, there fore
pushing organizations to decrease their costs, in order to still make some kind of
profit
...
That is where
countries like China played, and are still playing a big role in
...
An
example is shown in the case study ‘Job losses and offshoring in China’
...
Taking in consideration not only the low cost, but also the fact that China can
produce high-‐quality products, is what a lot of organizations triggered to either
perform FDI or use an agent, which is exactly what National Presto did -‐
‘subcontracting production to manufacturing plants in mainland China’2, in order
to reduce costs and increase competitive advantage
...
As stated in the case
study, Job losses and offshoring to China, supporters of free trade have argued
that political lobbying against trade with China is meant to soothe US fears of job
losses, however, according to stats from the US Bureau of Labor Statistics for the
1 Job Losses and Offshoring in China REAL CASE
2 Job Losses and Offshoring in China REAL CASE
By Cezanne Kooter
On International Business
Essay about Job Losses And Off Shoring To China &
Dumping On Trade Complaints
third quarter of 2010, 0,4 percent of all job losses in the United States only were
the result of “out of country relocation”3
...
As well that the currency for foreigners is much in their favor
...
That is almost 7 times as much
...
But other economists argue that
this is not the case, as a lot of companies trading with China would probably
suffer if the CNY would appreciate, especially that they heavily depend on it
...
It does not, however, take away that those governments have
been arguing about the fact that due to this, their countries GDPs are
diminishing, and affecting the economies big time
...
Now, not only this is affecting countries’ economic and political standards,
but also the issue with dumping and countervailing products
...
Since the upcoming of international trade, it has become more of an issue
that goods and services have been able to be imported in a country for a price
lower than the similar or same product produced in that country
...
Now
these trade agreements do outlaw the importing tariffs, quotas and special
measures, but there have been developed agreements that are more subtle
...
xe
...
These actions have
been put in place in order to prevent foreign countries from exporting to other
countries for lower prices than the similar or same products are sold in the
domestic country
...
The main issue why this has been allowed in the first place is the correct
handling of trading across borders, and the politicians lobbying for the correct
ways of trading
...
But if those products are similar to the ones
that are being produced and sold in that country, they should not, in any way be
sold for a lower price
...
If their home country already has a sufficient amount of those products
to fulfill the needs of their citizens, there should be no reason for more
...
Now you might wonder why the people lobbying for such regulations,
adjust these actions in the first place
...
In the case study, they give a good example about
why, and it goes as follows: “A variety of studies have found that the bureaucrats
who administer AD and CVD laws are subject to capture by the home industries,
who then use AD and CVD cases as harassment tools against often economically
efficient foreign rival producers
...
Especially with
countries that are particularly strong in their home countries products
...
The biggest influencers in todays‘ world trade are Triad nations with their
clusters surrounding them
...
This not only has an impact on the
main competitors, but also on the non-‐triad countries
...
However the AD and CVD regulations makes it for them more
difficult to export, and also for them to maybe someday enter in a higher market
6 Dumping on Trade complaints
By Cezanne Kooter
On International Business
Essay about Job Losses And Off Shoring To China &
Dumping On Trade Complaints
share
...
You might think, all of this would not affect us as individual consumers,
but it does definitely
...
To support my argument, let us just take an example: in Spain,
a lot of products are imported from China, India, and Bangladesh etc
...
When you walk in Barcelona for example, there are loads of
foreigners coming to you with fake handbags, clothes, accessories and shoes
...
Instead of
spending that money on fake, imported goods, they could have bought one or
two pieces that are manufactured in Spain
...
In this way, job opportunities increase, and this will increase the
likeliness of you getting a job easier
...
But then, when they get those products and know what is going
on behind the scene, they are in shock about how those employees are being
treated with the wages they get paid and the environment they have to work in
...
You either demand for low priced, somewhat
quality products and do not care about the circumstances in how those products
are manufactured, or you care and accept the fact that you have to pay a bit more
money, but for a product where you know that the circumstances and
environment of where that product has been manufactured are for you ethically
right
...
But it does bring multiple complications and regulations
that are not always ethically correct
...
By Cezanne Kooter
On International Business
Essay about Job Losses And Off Shoring To China &
Dumping On Trade Complaints
It will be interesting to see how the world will be developing the
upcoming years, and how those regulations will stand in place, or will have to
make room for other in order to establish a more fair and ethical way of trade
Title: Essay about Job Losses, Offshoring and Dumping
Description: This essay is about how offshoring to countries that are cheaper to produce in, cause domestic job losses. It also talks about the effects of dumping and what should be done about it. This piece was written for a course in International Business
Description: This essay is about how offshoring to countries that are cheaper to produce in, cause domestic job losses. It also talks about the effects of dumping and what should be done about it. This piece was written for a course in International Business