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Creating barriers for foreign competitors: a study of the impact of anti-dumping actions on the performance of U.S. firms

✍ Scribed by Sarah J. Marsh


Publisher
John Wiley and Sons
Year
1998
Tongue
English
Weight
86 KB
Volume
19
Category
Article
ISSN
0143-2095

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✦ Synopsis


This study investigates whether anti-dumping statutes are effective at improving the performance of U.S. firms. As international trade grows and competitors increasingly cross national borders to enter new markets, U.S. trade law becomes a potentially important tool for managers as they consider how to create barriers for foreign competitors. The results of this study suggest that the anti-dumping laws significantly increase returns of U.S. firms that pursue anti-dumping protection. The average petitioner between 1980 and 1992 received a $46 million increase in market value as a result of filing an anti-dumping petition. However, no significant change in market value was associated with preliminary or final determinations of the International Trade Commission, except when petitions received a negative determination at the final stage of the process. A negative determination at the final stage of the process resulted in a loss of market value.