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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

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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