Wal-Mart Business Ethics

Author Hopson is the president and CEO of an electronics firm. He thinks that trade with China is often unfait because China dumps products on the U.S. market.

Manufacturing Manufacturing has changed in the last 25 years assembly from scratch was done in the U.S. then U.S. assembled parts produced offshore then total production went offshore

Waves of Change The first wave of change in manufacturing was a move to Mexico. The second wave of change in manufacturing was a move to Asia.

Problem What alarms Hopson about the current situation? China has the infrastructure to build every television that's needed massive influx of products in a short amount of time from a large number of competitors lower cost of Chinese products there is no way the Chinese could be meeting the price points on a fair playing field

Dumping is selling goods below the cost of production is illegal according to international trade agreementd

Five-Rivers Electronics Five-Rivers Electronics specializes in high tech products products that are costly to ship products that they can deliver quickly

Five Rivers Dumping Case The Five Rivers dumping case was not officially supported by most television-related manufacturers in America because of fear was fought by the Chinese government, which put pressure on businesses wanting to do business in China was opposed by Wal-Mart was proven by looking at what the Chinese sold the products for in another comparable country

Fair Trade Hopson thought that he could compete with China's low labor cost Chinese production was more profitable for Wal-Mart They can charge first world prices while paying third-world costs of production.

Wal-Mart Wal-Mart argued that the products built by the Chinese were not really in competition with American products.

Fairness Fairness requires what a level playing field. This does not occur when the Chinese are dumping products on the American market.

Fairness What factors make the playing field an unfair one? the Undervalued Chinese currency regulations and loan policies favor large companies in China

China Argues The Chinese argued that the U.S does not buy American-made products; they buy price Five Rivers should relocate to China