1. Wal-Mart
Business Ethics

2. 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.

3. 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

4. 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.

5. 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

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

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

8. 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

9. 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.

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

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

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

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