Low Wage Social Dumping Essay Example
Group 3
LOW WAGE SOCIAL DUMPING
PREPARED BY:
Shams Baiani
Hsin-Yun Chen
Sreekrishna Gourneni
Hemanth Jayaram
Yu-Wen Kao
Dhaval Shah
Darshit Trivedi
Prepared in the partial fulfillment for the requirement of course IMS 6204 – 556
GLOBAL BUSINESS
Fall 2010
Dr. Habte Woldu
September 14, 2010 DEFINITION
What is Dumping?
Dumping is generally used in the context of international trade law, where dumping is defined as the act of a manufacturer in one country exporting a product to another country at a price which is either below the price it charges in its home market or is below its costs of production.
What is Social Dumping?
“Social dumping” is defined as a term (with a negative connotation) that is used to describe a temporary or transitory movement of labor, whereby employers use workers from one country or area in another country or area where the cost of labor is usually more expensive, thus saving money and potentially increasing profit. Social Dumping refers to an unfair advantage in international trade. It results from differences in direct and indirect labor costs, which constitute a significant competitive advantage for enterprises in one country, with possible negative consequences for social and labor standards in other countries. [6]
TYPES OF SOCIAL DUMPING
1. Social Dumping
a. Social dumping is the process whereby a transnational organization shifts production from a country with relatively high-employment costs to a country with lower costs.
b. Examples of Social Dumping are Production of Shoes by Nike in the third world countries.
2. Product Dumping
a. The act of a Manufacturer/firm in one country exporting a product to another country at a price which is either below the price it charges in its home markets or below its costs of production.
b. Exporting Products that are considered illegal in one country to another country where it’s not illegal.
c. Examples for Product Dumping are Japanese Automobiles sold
LOW WAGE SOCIAL DUMPING
PREPARED BY:
Shams Baiani
Hsin-Yun Chen
Sreekrishna Gourneni
Hemanth Jayaram
Yu-Wen Kao
Dhaval Shah
Darshit Trivedi
Prepared in the partial fulfillment for the requirement of course IMS 6204 – 556
GLOBAL BUSINESS
Fall 2010
Dr. Habte Woldu
September 14, 2010 DEFINITION
What is Dumping?
Dumping is generally used in the context of international trade law, where dumping is defined as the act of a manufacturer in one country exporting a product to another country at a price which is either below the price it charges in its home market or is below its costs of production.
What is Social Dumping?
“Social dumping” is defined as a term (with a negative connotation) that is used to describe a temporary or transitory movement of labor, whereby employers use workers from one country or area in another country or area where the cost of labor is usually more expensive, thus saving money and potentially increasing profit. Social Dumping refers to an unfair advantage in international trade. It results from differences in direct and indirect labor costs, which constitute a significant competitive advantage for enterprises in one country, with possible negative consequences for social and labor standards in other countries. [6]
TYPES OF SOCIAL DUMPING
1. Social Dumping
a. Social dumping is the process whereby a transnational organization shifts production from a country with relatively high-employment costs to a country with lower costs.
b. Examples of Social Dumping are Production of Shoes by Nike in the third world countries.
2. Product Dumping
a. The act of a Manufacturer/firm in one country exporting a product to another country at a price which is either below the price it charges in its home markets or below its costs of production.
b. Exporting Products that are considered illegal in one country to another country where it’s not illegal.
c. Examples for Product Dumping are Japanese Automobiles sold