Terror Management Theory Essay example - 905 Words

Terror management theory (TMT) asserts that human beings have natural tendency for self-preservation if there is threat to one’s well–being (Greenberg, Solomon, Pyszczynski, 1997). It notes that we are the cultural animals that pose self-awareness on the concept of past and future, as well as the understanding that one day we will die. We concern about our life and death but aware that it is unexpected by everything. The worse matter is that we become aware of our vulnerability and helplessness when facing death-related thoughts and ultimate demise (Pyszczynski Greenberg, 1992). The inevitable death awareness or mortality salience provides a ground for experiencing the existential terror, which is the overwhelming concern of people’s†¦show more content†¦We react to the death concerns through the acquisition and maintenance of self-esteem. Empirical evidences have established the association between self-esteem and cultural worldview. It showed that in dividuals with strong culture worldviews have higher self-esteem (Solomon, Greenberg, Pyszczynski, 1991). On the other hand, the research suggested that self-esteem is able to serve a death-denying function. If someone is being asked to think about their own death, it would increase their need for the protection affords by the cultural worldview and the self-worth derived from it (Harmon-Jones, Greenberg, Pyszczynski, Solomon, McGregor, 1997). Based on this presumption, TMT derives a hypothesis - anxiety buffer hypothesis, suggesting that self-esteem serves as an anxiety buffer against the mortality salience (Pyszczynski et al., 1999). Anxiety buffer hypothesis posits that self-esteem is an emotional buffer to defend against anxiety (Solomon et al., 1991). There are several significant evidences to support the claim that self-esteem serves as an anxiety buffer function. First of all, there are large literature review indicated that self-esteem is negatively correlated with various measures of anxiety and the physical and psychological consequences of anxiety. Leary and Downs (1995) demonstrated thatShow MoreRelatedTerror Management Theory1289 Words   |  6 Pagesself-preservation is a characteristic to both humans and animals, the understanding of one’s own mortality is uniquely human. How do we, as humans, deal with the terror that is associated with this knowledge? According to Terror Management Theory (TMT), de veloped by Jeff Greenberg, Sheldon Solomon, and Tom Pyszczynski (1989), the need for â€Å"terror management† is a fundamental function possessed by humans and cultural systems. Based on the writings of anthropologist Ernest Becker and inspired by Freud’s workRead MoreTerror Management Theory1289 Words   |  6 Pagesself-preservation is a characteristic to both humans and animals, the understanding of one’s own mortality is uniquely human. How do we, as humans, deal with the terror that is associated with this knowledge? According to Terror Management Theory (TMT), developed by Jeff Greenberg, Sheldon Solomon, and Tom Pyszczynski (1989), the need for â€Å"terror management† is a fundamental function possessed by humans and cultural systems. Based on the writings of anthropologist Ernest Becker and inspired by Freud’s workRead MoreTerror Management Theory Applied To Ageism In Film1554 Words   |  7 PagesTerror Management Theory applied to Agei sm in Film Frida Ramirez Lone Star College – University Park Terror Management Theory applied to Ageism in Film Ageism (prejudice toward the elderly) is becoming a pressing issue as the population of adults over sixty proliferates (Levy Macdonald, 2016, p. 5). Enforcers of ageist stereotypes include the mainstream film industry. By enforcing a negative stereotype, the media subconsciously implements fear of growing old and ultimately dying among its viewersRead MoreThe Simpsons Worst Running Tv Series Of All Time991 Words   |  4 Pagesdome, a massive bomb is placed in an effort to prevent Springfield from further pollution. (The Simpsons Movie). The looming threat that in a short matter of time everyone could be dead. It is at this point that Terror Management Theory takes effect. Terror Management Theory (TMT) is a theory that effects every single human. This also applies to most TV shows, movies, books, poems, and music. TMT as defined according to Nathan Heflick, a Ph. D. and Senior Lecturer of psychology at the University ofRead MoreTerror Management Analysis Of Psychological Functions Of Religion Essay889 Words   |  4 PagesResearch Review #1 For my research review, I selected Puppy-Monkey-Baby (PMB) Terror Management Analysis of Psychological Functions of Religion. This research article focuses on terror management theory, and more specifically how religion serves to manage the terror a human may experience when confronted with the thought of death (Vail, 2010). Although non-religious beliefs can serve as a form of terror management, spiritual beliefs are frequently used to alleviate anxiety caused by death becauseRead MoreShould Disgust Influence Our Considered Moral Judgments?1328 Words   |  6 Pagesguide our judgments of a range of activities and social practices. Many advocates claim that feelings of disgust are sufficient to justify an ethical assessment. Moral disgust advocate who follow deep wisdom theory see the emotion of disgust as a suprarational source of information. This theory interprets disgust as an emotion that is morally attuned and provides insight into the nature of disgust. Advocates argue that in this day in age everything is tolerable and because of this disgust may be theRead MoreThe Science Behind Sleep : The Physics Of Sleep Essay1675 Words   |  7 Pagessleep(Walcutt). It is very difficult to wake a person during this time. To get any good sleep, it is important to be in these two stages for a while. During these stages is usually â€Å"when some children experience bedwetting, sleepwalking, or night terrors†(Stages of Sleep). A person has no muscle activity or eye activity during this time. There are many myths about better ways of deep sleeping, but one myth in particular has just recently been proven wrong. That myth is that alcohol will aid in aRead MoreThe Importance Of Artificial Disasters1206 Words   |  5 Pagesregarding dealing effectively with the disasters that occur abruptly. When a disaster occurs, the priority is to reduce the vulnerability of people to hazards such as terror attacks and natural disasters. Therefore, to save human lives and also reduce property damage, in the long run, disaster analysis is a very important part in disaster management. In a given society, disasters can expose citizens to the benefits gained from cooperation in a rather dramatic way. Specifically, individuals can break awayRead MoreTerrorism Is Very Real For Mnes Essay1233 Words   |  5 Pagesboth theory and practice. The research question addressed by this exploratory study is how international businesses apply past terrorism exposure and experience from operating in risky locations to create organizational preparedness and performance resilience to absorb and endure future terrorist attacks. This paper contributes to the international business literature by addressing a gap in the literature how firms can prepare for and respond to terrorism. The study contributes to a theory of organizationalRead MoreTerrorism Is The Act Of Using Violence1493 Words   |  6 Pagesinterpret and analyse this phenomena in many different perspectives and theories. This essay will look at two particular sociological perspectives of terrorism; by Mathew Deflem a nd Gabe Mythen and Sandra, to critically analyse the content of their articles, their perspective on the understanding of terrorism, and the limitation in respect to their theories. Mathew Deflem uses his theory to explore how Bureaucratization theory can be utilized to create effective policing, subsequently producing successful

Manifesto Of The Communist Party Essay - 1702 Words

In the chapter, â€Å"Manifesto of the Communist Party† in The Marx-Engels Reader book, Karl Marx and Friedrich Engels had broken up the topic of the Communist Party up to four parts: 1. â€Å"Bourgeois and Proletarians†, 2. â€Å"Proletarians and Communists†, 3. â€Å"Socialist and Communist Literature†, and 4. â€Å"Position of the Communists in Relation to the Various Existing Opposition Parties.† In this essay, I’ll be focusing on the first two parts of the â€Å"Manifesto† since there are so much information to cover within three to four pages. To begin I would like to summarize, â€Å"Bourgeois and Proletarians† was about the vicious cycle of the proletariats having to constantly fight the socioeconomic classes above them considering that they are always exploited, yet they have no norms (â€Å"appropriation†) of their own to secure or embrace. â€Å"Proletarians and Communists† was where Marx and Engels defi ne what Communism is, how it relates to the Proletarians, and how Communism works (or would work). History can be trace back to the class/political struggles; the oppressed fighting against their oppressors; the â€Å"subordinate gradations†. Subordinate gradation was defined as a social rank, where the highest power is at the top and the weakest is at the bottom. However, when old subordinate gradation falls another one would rise, that was the cycle. Marx and Engels went on to make a statement that the current class antagonisms are between the bourgeoisie and the proletariat. The proletariat is defined as theShow MoreRelatedManifesto Of The Communist Party920 Words   |  4 PagesThe Communist Manifesto, originally drafted as, â€Å"Manifesto of the Communist Party†, is a pamphlet written by Karl Marx, that in essence reflects an attempt to explain the goals and objectives of Communism, while also explaining the concrete theories about the nature of society in rela tion to the political ideology. The Communist Manifesto breaks down the relationship of socio-economic classes and specifically identifies the friction between those classes. Karl Marx essentially presents a well analyzedRead MoreThe Manifesto Of The Communist Party Essay1526 Words   |  7 PagesIntroduction: The Manifesto of the Communist party is a book written in 1847, by a group of radical workers part the â€Å"Communist League.† Including the radical workers, the group comprised of Karl Marx, and Friedrich Engels. They met in London to write a manifesto on their behalf, which would be famously known as the Communist Manifesto. Marx was the principle author, while Engels was mainly focused on editing and assisting. The Communist Manifesto was originally published in London in 1848. TheRead MoreThe Manifesto Of The Communist Party758 Words   |  4 PagesIn The Manifesto of the Communist Party, Marx and Engels elaborate a bold thesis on the trajectory of history. Their argument is an important sociological step in social and economic analysis but it fails to provide a convincing account. Marx and Engels provide a telling account of the historical process of economic and social change. They cogently examine the role that the rise of capitalistic markets has had on the social order, exposing the shift of hierarchical distinctions from lord and serfRead More The Manifesto of the Communist Party Essay1346 Words   |  6 PagesThe Manifesto of the Communist Party Drafted in 1848 by Karl Marx and Frederick Engels, the â€Å"Manifesto of the Communist Party† outlines the views, tendencies, and aims of the communist party through the so-called philosophy of historical materialism (Distante). These views were expressed throughout four distinct sections of the â€Å"Manifesto of the Communist Party.† The first section describes the relationship between the bourgeois and the proletarians. The next section depicts theRead MoreChapter Of Manifesto Of The Communist Party Essay1540 Words   |  7 Pages â€Å"The history of all hitherto existing society is the history of class struggles† (Mark 344). This is the famous sentence with which Karl Marx begins the first chapter of Manifesto of the Communist Party, by using the word class this would imply ordering people into societal groups. Karl Marx was referring to economic class, however, society can be grouped into many different classes, such as, economic standing, gender, or race. Each provides an interesting view on how different values have shapedRead MoreMarx And Engels, The Manifesto Of The Communist Party888 Words   |  4 Pages Marx and Engels , The Manifesto of the Communist Party The Manifesto of the Communist party was written by Karl Marx and Friedrich Engels in 1848. Karl Marx was a German philosopher, economist, sociologist, journalist and revolutionary socialist. Friedrich Engels was also a German philosopher, social scientist, and journalist. Friedrich Engels helped came up with the Marxist theory alongside Karl Marx, they also worked on the Communist manifesto which gave a general insight to theRead MoreMarx s Manifesto Of The Communist Party Essay1933 Words   |  8 Pageswas a humanist, materialist, and a philosopher, not an economist, contrary to popular belief. â€Å"[†¦] a man engaged in endless internecine political and philosophical warfare† (Menand, 2016, pg. 2). He is the author to the popular text, â€Å"Manifesto of the Communist Party† (1848), where Marx defined communism, discussed how industrial capitalism is evil, alienation versus objectification, liberation from alienation, types of class struggles in society, diale ctical materialism, and socialism. Marx haveRead MoreMarx s Manifesto Of The Communist Party Essay2332 Words   |  10 Pagesclass family in Germany. He is one of the most important people in the history mostly due to his ideas that people refer to as Marxism, which includes many essays and theories about politics and economics. His most famous work is called Manifesto of the Communist party. In this manuscript, along with his friend Friedrich Engels, he states that the best way for a society to develop is through a revolution and struggle in which the working class will rise against the bourgeoisie or the ruling class. TheyRead MoreNew Democracy And Manifesto Of Korean Communist Party1273 Words   |  6 PagesDemocracy and Manifesto of Korean Communist Party In January of 1940, Zedong Mao delivered a speech during a liberal conference in Yan’an, the center of communism and socialism in China. In the speech, Mao argued that the fate of Chinese revolution must be held in hands of proletariats, and as a leading result, the revolution must construct China as a socialism country. Two decades ago, in 1921, Shanghai, Korean communists also declared their country’s independence by publishing The Manifesto of KoreanRead MoreMarx And Friedrich Engels s Manifesto Of The Communist Party948 Words   |  4 PagesIn 1848 Karl Marx and his close friend and collaborator Friedrich Engels wrote The Manifesto of the Communist Party as a platform for the Communist League, a society to which they both belonged. This essay will explore the types of societies that this document describes, as well as the effects that Industrial Capitalism had on societal and individual levels. The Communist Manifesto focuses mainly on describing the society that the authors fear or that already exists, rather than the society that

Speed Cast International Ltd Annual Report †Myassignmenthelp.Com

Question: Discuss About The Speed Cast International Ltd Annual Report? Answer: Introduction AASB 16 shall be effective from 1st January 2019 onwards, the main objective of which is the recognition of all kinds of leases that are above 12 months in the financial statements. Under this standard, the lessee shall recognize the right to use an asset on the assets side and the liability to pay the lease payments on the liability side of the balance sheet. Further, the lessee shall also record the depreciation of such leased asset and the interest on lease liability in its income statement (AASB, 2016). Also, the cash flows shall show the cash repaid portion of lease payments and bifurcate it into interest and principal. This shall be common for all types of leases whether operating lease or finance lease. Hence, the application will cater to both types of leases. We shall elaborate the above points with regard to a company in GICS Sector Speed Cast International Limited, a leader in the field of network service from the perspective of a stakeholder, say the Shareholders of the company. Change in leasing standard and its impacts Amendments in the lease standard The leasing standard has been changed due to the reason that the earlier model required to classify the lease into operating lease and finance lease but did not require the lessee to show the leased asset and its liability in its financial statements in case of the operating lease (AASB, 2016). Due to this the users and stakeholders of the financial statements of the lessee were not finding a satisfactory presentation of the lease transactions in the financial statements of the lessee in case of an operating lease. Hence the concerned boards have decided to make the requisite amendments to the leasing standards (Porter Norton, 2014). Disclosures in the income statement The change will be that the lessee will have to record the right of use of the asset in the balance sheet and consider it as a depreciable asset and also show the obligation to pay off the lease payments as liabilities in the balance sheet (Northington, 2011). Further, the depreciation of the said asset and interest on the lease payments shall be disclosed in the income statement. Distributable profits The above said changes will have an impact on the net incomes shown in the income statement of the lessee as the interest on lease payments as well as depreciation will be added to the expenses in the income statement. Hence the net incomes will get reduced. Such as reduction in net distributable incomes shall affect the shareholders of the company as the distributable profits will reduce and thus the earning per share will reduce. Therefore, it will impact the wealth of the shareholders since there will be a reduction in the profits of the company. Decision making ability The benefits to the shareholders will be that after the new lease standards are adopted, the shareholders will have a transparent picture of the lessee companys financial leverage and capital employed and as such a better comparison can be made as to in which company they should invest further. The decision-making ability of the investors will undergo an immense change. The disadvantage shall be the reduced portion of their profits in the form of dividends and also a reduction in total equity. Effect of AASB 16 on Financial Statement Recognition of lease effects First, we shall ascertain the effects of the new standard on the lessee companys financial statements that is Speedcast International Limited. The changes in the recognition of lease effects will change the related ratios such as net profit ratio which was 2.70 % for the year ending December 2016, Net Leverage Ratio which was 8.67% and other such ratios (Melville, 2013). The N.P Ratio will decline due to increase in the interest and depreciation expense. The Net Leverage Ratio will show an increase due to rise in borrowings which are the lease payable (Speedcast International Ltd, 2016). Other ratios such as interest coverage ratio, Earning per share will also show a downfall due to increase in expenses and decrease in net profits. When the expenses are on a surge and the Earnings and dividends The effect on the stakeholders financial statements will be that as the earnings and dividends will reduce from the lessee company and such it will reduce the net profit of the stakeholders also. Further, due to a reduction in dividends and earnings per share, the market price per share may reduce and thus the total value of investments may reduce which is shown in the balance sheet. Reporting on the environmental and social aspects of the leased assets When it comes to reporting regarding the environmental and social aspects such as energy use and efficiency, carbon emissions, etc of the leased assets, it should be the responsibility of that entity which has got the right to use that asset and is actually using it. The reason behind this is that as the asset is no longer in the hands of the lessor as the lessee has legally taken the right to use the asset and is using the asset for the business operations (Bodie et. al, 2014). For our chosen stakeholder that is the shareholders, there are no regulatory requirements for such reporting as the lessee company is using the assets for its business use and the shareholders are not using the assets for their individual use. The following points are reported: Whether or not the emissions from the leased asset are creating any health hazard to the environment. Whether or not the regular pollution control and checking are done for the leased asset. Whether or not the user of leased assets is fulfilling the requirements of reporting to the regulatory authorities within time. Other such related points which are important to ensure that the society and environment as a whole are not being harmed by any leased asset. Hence, the lessee should ensure that the society or the environments are not affected by the lease arrangement. For example- water or air pollution, soil erosion, cutting of the tree, emission of harmful gases, loss of jobs. This is required as this will adversely affect the society and environment which shall have long-term ill effects (Shah, 2013). On the other hand, if the lease arrangements give back advantages to the society, it will be advantageous in both short and long run for the owner or user as well. Hence, it will create a positive impact that will help the organization, as well as the society at large. Usefulness of AASB 16 to the users of financial statements of the lessee company. The overall reporting after the AASB 16 comes into effect shall be more beneficial and informative to the users of financial statements. The changes in reporting and its use by the users of financial statements can be summarized in following points: Change in the financial metrics The new standard that will be effective from the year 2019 shall almost eliminate the reporting of the leases off balance sheet and the lease transactions will be shown on the balance sheet and income statement. Earlier and at present also the financial lease is shown in the income statement and balance sheet but the operating lease is being shown outside the financial statements in the notes to accounts (Libby et. al, 2011). The proposed change will help in redefining of the financial metrics such as the financial ratios like gearing ratio, and other such ratios (KMPG, 2016). It means that the effect of operating lease and their effect on the ratios will also be known to the users of financial statements. The benefit of this will be ease of comparison with other companies in the industry but the disadvantages are also there as the net profitability of the company will go down further affecting the creditability, the finance costs and also the perception of the stakeholders. Disclosures of the profitability segment and the asset base of the company The users of the financial statement will better know the asset base of the company once this standard comes into effect as the assets that are being used by the company whether owned or leased will be reflecting in the balance sheet (Damodaran, 2012). At present the assets under operating lease are shown as off-balance sheet item (KMPG, 2016). The users are generally aware of the financial statements and do not go into in-depth study in the notes to accounts and other information. Disclosures necessary for the financial institutions imparting loans to the lessee company. The information regarding the net worth of the company, the existing borrowings, the profitability of the company and such matters are of utmost importance for the financial institutions from which the company seeks financial assistance (Parrino et. al, 2012). When the operating lease is not recognized in the financial statements although the right to use the asset is vested in the company, this does not give the correct picture of the financial position of the company to the financial institutions (KMPG, 2016). Hence with the implementation of the AASB 16, the financial institutions will have a clear image of the financial position before imparting any more loans and advances. Investing decisions The users of the financial statements of the lessee will now determine whether they want to further invest in the company or not. This is due to the fact that the company shall show the interest and depreciation expenses in the income statement which will for sure bring down the profitability (BDO 2016). Further, this will impact the earnings per share/dividends to the shareholders and may be a reduction of the market price per share. This may result in a reduction in the number of investors of the company as they will start getting lower returns on their investments (Speedcast International Ltd, 2016). Summary of the total report to be presented to the Chief Executive Officer The total concept of AASB 16 shall be summarized through following precise points: Lease recognition As per the earlier and present standards on leasing, the leases are classified in the financial statements as operating lease and finance lease. With the coming of the new standard, all the leases will be recognized in the same manner and there will be no difference in the operating and finance lease with regard to their recognition in the financial statements (AASB, 2016). Ratio analysis The new standard will affect almost all the financial ratios such as gearing ratios or net leverage ratios, current ratio, asset turnover ratio, interest coverage, net profit/ margin ratio. Other financial metrics will also be affected such as EBITDA, Net Profits, earning per share, dividend per share, operating cash flows, etc (BDO 2016). Changes in the standard The changes in the standard will affect the perspective of the stakeholders of the company such as shareholders, investors, government, employees, financial institutions, etc. as there will be changes in the credit ratings, borrowing costs, net asset values, earnings per share of the company which directly or indirectly affect the stakeholders (Needles Powers, 2013). New standard for new standards. The implementation of the new standard will increase the total expenses of the lessee company as the lease rentals will be replaced by interest on the lease was taken as well as the depreciation on the right to use assets (Williams, 2012). The main effects will be that due to the large assets such as ships, aircraft, big machinery, etc. and not small assets such as computers, laptops, small equipment, etc Conclusion Going by the overall discussion it can be commented that the new standard will be highly beneficial to the organization and eliminate the lease reporting and will thereby appear on the balance sheet. Hence, a level of an enhanced transparency will be witnessed. From the amendment and updating point of view, it can be said that the new standard will altogether bring a vast change in the reporting mechanism in respect to the operating leases which was treated as an off-balance sheet item. Hence, the shareholders will be able to get a better grasp of the lease operations which was not possible earlier. Though there are certain problems but in totality the mechanism will be highly beneficial and bring widespread transparency. References AASB 2016, Leases, viewed 19 September 2017 https://www.aasb.gov.au/admin/file/content105/c9/AASB16_02-16.pdf BDO 2016, New leases standard requires virtually all leases to be capitalised on the balance sheet, viewed 19 September 2017 https://www.bdo.com.au/en-au/accounting-news/accounting-news-february-2016/new-leases-standard Bodie, Z., Kane, A. Marcus, A. J 2014, Investments, McGraw Hill Damodaran, A 2012, Investment Valuation, New York: John Wiley Sons. KMPG 2016, AASB 16: A fundamental overhaul of lessee accounting effective 2019, viewed 19 September 2017 https://home.kpmg.com/au/en/home/insights/2017/04/aasb-16-fundamental-overhaul-lessee-accounting.html Libby, R., Libby, P Short, D 2011,Financial accounting, New York: McGraw-Hill/Irwin. Melville, A 2013, International Financial Reporting A Practical Guide, 4th edition, Pearson, Education Limited, UK Needles, B.E. Powers, M 2013, Principles of Financial Accounting, Financial Accounting Series: Cengage Learning. Northington, S 2011, Finance, New York, NY: Ferguson's. Parrino, R., Kidwell, D. Bates, T 2012, Fundamentals of corporate finance, Hoboken, NJ: Wiley Porter, G Norton, C 2014, Financial Accounting: The Impact on Decision Maker, Texas: Cengage Learning Shah, P 2013, Financial Accounting, London: Oxford University Press Speedcast International Ltd 2016, Speedcast International Ltd Annual Report Accounts 2016, viewed 19 September 2017 https://www.speedcast.com/speedcast-reports-full-year-2016-results/ Williams, J 2012, Financial accounting, New York: McGraw-Hil

The Effect of Other Countries Dumping in United States Why America is acting against Chinese Dumping in the US

Table of Contents Introduction The concept of â€Å"dumping† Why is China dumping in the US? The impact of Dumping in America Concept of ant-dumping policy Effect of anti-dumping policy Works Cited Introduction Over the last two decades, most countries, including the United States, have become more cautions of the excessive supply of cheap products from foreign markets. In particular, the United States has enacted anti-dumping campaigns and measures to control the influx of cheap goods from, among other nations, China. Since China accessed the world trade organization in 2011, its reach for western markets has grown tremendously.Advertising We will write a custom essay sample on The Effect of Other Countries’ Dumping in United States: Why America is acting against Chinese Dumping in the US specifically for you for only $16.05 $11/page Learn More However, America and her western counterparts have been reluctant to engage China in mutual trade, considering the excessiveness of cheap products China has been supplying to foreign nations (Messerlin 109). The US considers this excessiveness of cheap good from China as â€Å"dumping†, thus employing various strategies to protect her industries against the overflow of cheap Chinese goods in the local market. This is also becoming the situation affecting India as it grows to be the second largest producer of cheap products after China. The purpose of this discussion is to analyse the impact of â€Å"dumping† in American market by foreign nations, with a special reference to China. Arguably, despite the accession of China to the WTO and the fact that China hosts a large number of American manufacturer’s, there is need for the United States to continue protecting her market and industries from dumping. The concept of â€Å"dumping† According to Vandenbussche and Zanardi (93), dumping is defined as an international trade situation where a productâ €™s export price is significantly lower that its market price in the country of origin. However, it is worth noting that the sale of a product based on bargain price is not included in the definition for dumping. Why is China dumping in the US? It is no doubt that America is a major market for products from all over the world. In fact, most nations seek to develop trade relationships and agreements with the United States in order to access America’s potential and developed market. However, America is also a major producer and exporter of commodities in the world, and targets foreign markets for its goods. In the recent past, however, the emergence of large economies like China and India has threatened America’s presence in the world market. China’s accession to the WTO in 2001 improved the trade relationship between China and America, which has seen the Chinese manufactures target America as a chief market for their goods (Blonigen and Bown 43).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More On the other hand, American corporations have set up major outlets in China, especially in the manufacturing sector. However, there have been problems in this relationship, which seems to affect America more than they affect China. First, China has the world’s largest population at more than 1 billion people. The presence of cheap labour is evident in China. Chinese workers are paid a fraction of what most low-paid employees get in the western world. As such, Chinese manufacturers enjoy cheap and readily available labour. This places them at an advantage over the American firms, which in turn allows them to sell their products at a cheaper price in the US. In fact, American corporations such as Apple have moved to China in search of cheap labour, but their main market remains in the US. The impact of Dumping in America The impact of this is that Am erican market is flooded with cheap Chinese goods because they are cheaply produced in China. American firms face stiff competition from these products because they cannot produce cheap products due to high cost of production. When American firms lose the local market to their Chinese counterparts, their production and growth reduces. As such, their rate of hiring reduces, while layoff rates are likely to increase. As more people purchase cheap Chinese goods, the rate of unemployment is likely to reduce in the US, while that of China increases. Finally, Chinese goods are not necessarily made to meet American standards. Dumping sub-standard products in American market for the sake of cheap price is likely to affect the American economy because consumers will be spending large amount of resources to replace these products. Concept of ant-dumping policy In 1994, members of the world trade organization made an agreement on implementation of its Article VI, which imposes the responsibili ty of nations to curb dumping in their markets (Van den Bossche 56). The agreement, known as the â€Å"Anti-dumping Agreement†, was developed under the General Agreement on Tariffs and Trade in the 1994 convention.Advertising We will write a custom essay sample on The Effect of Other Countries’ Dumping in United States: Why America is acting against Chinese Dumping in the US specifically for you for only $16.05 $11/page Learn More It allows member nations to impose anti-dumping measures to protect the domestic industries that can result from excessive presence of cheap foreign products in their markets (Van den Bossche 63). However, this must be pursuant to (and through) investigations under the 1994 agreement. In addition, a country’s imposition of a duty to curb dumping in its local market must be determined by the margin of dumping at a given time. This margin is obtained by finding the difference between the domestic selling pri ce in the exporting country and the export price of a given quantity of commodity. The dumped price can be considered a â€Å"fair price† and thus not significant reason to impose a duty when export price is added to dumping margin. In case it is difficult to determine a comparable price for offering the product in the domestic market due to low or lack of volume sales in the normal process of trade, the country must investigate the possibility of dumping by comparing the import price with the same price in a third nation. Alternatively, the WTO agreement requires the country to develop a â€Å"constructed value†, which should be used in comparison with the export price. There is a great deal of freedom for countries to impose anti-dumping measures against their trading partners. For instance, a government is not required to provide consent or even offsets to an initiative taken as a countermeasure by its trading partner. Effect of anti-dumping policy Anti-dumping poli cies, such as the one initiated by the US against China, have a wide range of effects on both local and foreign economies. With implementation of such policies, products are likely to become less attractive to an importer, which favours local products. Local firms are likely o enjoy reduced competition. In addition, local firms enjoy tremendous growth and expansion, which provides a source of employment for the local population (Nelson and Vandenbussche 127).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, anti-dumping policies have some negative impacts. For instance, local firms need to import some goods and raw materials that are not available in the local market. When a foreign nation such as China has been targeted with an anti-dumping policy, it is likely to reciprocate by increasing the price of exporting such materials to the trade partner. As such, local firms are likely to face tough terms and conditions as well as high prices when importing products from the targeted country. Moreover, such a policy is likely to discourage competition in the market, which in turn hinders development. In addition, it is likely to favour local firms such that they increase product prices deliberately since there is no competition. Works Cited Blonigen, Bruce and Chad Bown. â€Å"Antidumping and Retaliation Threats†. Journal of  International Economics 60 (2009): 249–273. Print Messerlin, Patrick. â€Å"China in the World Trade Organization: Antidumping and Safeguards †. World Bank Economic Review 18.2 (2008): 105–130. Print Nelson, Douglas and Hylke Vandenbussche. The WTO and anti-dumping. New York: Edward Elgar Publishing Limited, 2009. Print Van den Bossche, Peter. The Law and Policy of the World Trade Organization. Cambridge, UK: Cambridge University Press, 2010. Print. Vandenbussche, Hylke and Maurizio Zanardi. â€Å"What Explains the Proliferation of Antidumping Laws?† Economic Policy 23 (2008): 93–138. Print This essay on The Effect of Other Countries’ Dumping in United States: Why America is acting against Chinese Dumping in the US was written and submitted by user Aria N. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.