An Ethical and Legal Synthesis of Dumping: Growing Concerns in International Marketing

International law holds that a firm is dumping if its foreign price is either below its domestic price or below its marginal cost. Domestic firms often claim that a low-cost foreign firm is engaged in a long run strategy to destroy the domestic industry and harm domestic consumers. Dumping is a perm...

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Bibliographic Details
Main Author: Delener, Nejdet (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 1998
In: Journal of business ethics
Year: 1998, Volume: 17, Issue: 15, Pages: 1747-1753
Further subjects:B Marketing Strategy
B International Market
B Foreign Firm
B Marginal Cost
B Marketing
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Summary:International law holds that a firm is dumping if its foreign price is either below its domestic price or below its marginal cost. Domestic firms often claim that a low-cost foreign firm is engaged in a long run strategy to destroy the domestic industry and harm domestic consumers. Dumping is a permanent feature of marketing strategies of numerous companies, and anti-dumping complaints are increasingly resorted to as a defensive instrument to stop the challengers. This article offers a synthesis of ethical and legal issues involved and relates them to marketing concerns in international operations. What is the current state of dumping legislation? What concern over personal ethics should a manager have? Using teleological and deontological philosophies of ethics the argument is made that the marketing manager who set very low prices for an international market is not behaving unethically.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1023/A:1006096208553