Week 1 Ethics Essay

670 Words3 Pages
Week 1 Case Study 1.1 and 1.2 Question 4 DeVry University Week 1 Case Study 1.1 and 1.2 Question 4 Case 1.1: Made in the U.S.A.-Dumped in Brazil, Africa, Iraq… Question 4: If no law is broken, is there anything wrong with dumping? If so, when is it wrong and why? Do any moral considerations support dumping products overseas when this violates U.S. law? Dumping is defined in the business dictionary as “exporting goods at prices lower than the home-market prices.” Dumping is basically riding of an unwanted or banned product and dumping or selling it to another country to make it their problem. It is not wrong in the business aspect because the main advantage of dumping is free trade; companies export goods at a lower price than their domestic price or their cost of production, although the country will have to give the exporting business a huge subsidy to allow them to sell the product below cost. The country will take a loss on the product to increase its comparable advantage in that business. Knowing a product that is considered dangerous and selling it to other countries, I find is very wrong. Most large companies value money than integrity and want to protect their company. Under the definition of dumping, it isn’t considered illegal, companies take advantage of the definition of dumping and “legality should not be confused with morality” (Shaw, 2011, pg. 12). There are moral considerations made that support dumping, countries are free to decide to act against dumping if the product can cause injury. According to World Trade Organization, WTO agreement allows governments to act against dumping where there is genuine (“material”) injury to the competing domestic industry. Investigating that a company is dumping is a complex situation, a country has to prove that dumping is taking place, calculate how much is dumping is taking place and if it
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