Anti-dumping Consultants: What Do They Do and Why Are They Necessary?
Dumping is the marketing of goods at less than the cost of production to gain a competitive advantage over other firms. Injured companies often hire anti-dumping consultants to determine why their products are cheaper overseas. The reports produced by these consultants are used by government agencies to combat dumping and promote fair competition.
In general, anti-dumping consultants help injured companies by finding out why foreign competitors are selling at lower prices. The work of these consultants is vital in determining how to best promote the interests of the nation and injured companies. Consulting firms are usually hired by government entities such as the Department of Commerce and Agriculture or the Department of Defense. They're also hired by large corporations when the government or corporation has a domestic market for goods Made in America.
For example, if a shoe company wants to produce a pair of shoes in America that it can sell domestically and internationally, it will have to find a way to make them profitable. If they can't do this, they might as loading their products onto ships and sell them overseas instead. To increase sales, they could reduce the price of their goods while simultaneously increasing the quantity purchased. However, this would result in lower profits for both companies involved in the trade and no increase in sales numbers. To maximize sales, companies must find ways to make their products more profitable so that they can compete with overseas goods without reducing their prices.
Large corporations that want to increase their sales typically hire anti-dumping consultants to find ways to do so without decreasing costs. Consulting firms look at competition from other industries and identify ways that businesses can increase sales without increasing costs. This is difficult but necessary work due to industry competition and consumer demand. Consulting firms look at how other industries have become more profitable by identifying effective strategies and policies used by businesses that have become more profitable. These strategies and policies are referred to as cost leadership and may be available through government procurement or corporate buying programs or advertising budgets.
If companies cannot increase profitability, they should reduce their costs. This may be done through price cuts or by seeking substitute suppliers when possible. However, keeping prices high may be necessary in this case may be necessary if increased competition is detrimental to company profits. Anti-dumping consultants assess business conditions before suggesting price reductions or substitute suppliers because lowering prices too much could harm company profits- which could jeopardize company survival in some cases.
