Activity No.

3
International Trade and Agreement
Topic: Lesson 3 Trade Barriers

A. Surf the search engines and find out how the anti-dumping law in the Philippines protects
the Filipino exporters against this business practice.
How the anti-dumping law in the Philippines protects the Filipino exporters against this
business practice?
According to Republic Act No. 8752, otherwise known as the “Anti-Dumping Act of 1999”
(the “Act”), provides protection to a Philippine domestic industry which is being materially
injured, or is likely to be materially injured by the dumping of articles imported into or sold in
the Philippines. An exporting company is said to be “dumping” when exporters sell their
product to an importer in the Philippines at a price lower than its normal value and is causing
material injury to a domestic industry producing like product.

It is said that dumping is not illegal, nor prohibited. It is common for export prices to be at
much lower prices than the domestic or home market prices because there is an intense
competition between international markets and it is a common international practice that can
be beneficial to both exporting and importing countries. But if it injures the Philippine
producers, duties can be imposed after a formal investigation.
Source: https://www.dti.gov.ph/negosyo/imports/trade-remedies/anti-dumping/

B. Surf the search engines and read thoroughly on the boycott of Danish products by the
Muslim world. What should the Danish government and exporters do to prevent this
trade war?
Facts about the boycott of Danish products by the Muslim world.
In year 2005, the caricatures in questions were first published BY Danish newspaper Jyllands-
Posten in September 2005 and then later on picked up by other European publications in early
2006 including the French satirical Charlie Hebdo magazine. The caricatures led to protests
among Muslims in many countries who started boycotting Danish products. The governments
also became involved, with the diplomatic protests escalating to the closure of several
embassies. The boycott of the Danish products in Muslim world cost Denmark’s companies
millions. In 2006 around February and June, Danish exports to the Middle East fell by half and
the cost to Danish businesses was around 134 million euros ($170 million). Dairy giant Arla
lost some 450 million kroner (est $70 million) because of the 2006 boycott. The impact was
lasted until April 2008 the company said its turnover was only half of what it expected for the
year. Jyllands-Posten apologised on the 30th day of January 2006 saying it wasn’t their
intention to offend them. These cartoon incidents are not the only ones that haver stoked the
anger of French Muslims but it surely was the one that has create a big impact.
Source: https://salaamgateway.com/story/muslim-boycott-of-danish-products-in-2006-cost-
companies-millions-how-much-is-at-stake-for-frances-e
What should the Danish government and exporters do to prevent this trade war?

I think the best thing that the Danish government and exporters should do is if ever possible
lay low. Because sometimes it is much better to say nothing. They shouldn.t have said
something that might offend or be disrespectful to one or more countries culture or beliefs.
Just one mistake can be everyone’s problem. Just because of a single action of a Danish
newspaper editor it has caused a severe damaged not only to the reputation of his country but
to all the Danish businesses. No one has for foreseen that such thing could happen. Danish
businesses should also try to reach out to their business colleagues in countries where they
manufacture and distribute such goods. This should be a lesson learned not just for Danish
companies but to all the exporting countries. Businesses should also set their minds that
trading is not just exporting and importing products but also getting to learn and engage in
multiple countries that have different cultures, way of life, etc. Other things that may help
them to prevent trade war is they should explore more market and expand other services that
can offer.

C. Further explain why country should imposed trade restrictions?

Why the Philippines should impose trade restrictions?

Because there are such goods or services that are not legal or approved by law. If the
Philippines will lift up the trade restrictions it will be like an invitation to import and export
illegal goods and services. This will be an opportunity as well for the illegal smugglers to
easily import and export drugs and even toxic and hazardous goods and weapons that might
cause mass destruction can be easily imported and exported.
Surf the net and research on samples of embargoes. Explain why the country should
impose it.
Based on my research, embargo is a government order in which they restricted commerce with
a specified country or the exchange of specific goods. Only certain items can be embargoed
such as military equipment or oil. In my opinion, the country shouldn’t impose it because it
will prevent businesses to provide goods and services to other countries. I mean they can make
trade restrictions and prohibit certain goods and services. If they impose it they will be
blocking the importation of important goods and services to the civilian population of our state
but at the same time I think it is good to impose embargo since it is most often directed at a
country or a group of countries and embargoes can also be imposed against a criminal or
terrorist organization.
Source: https://corporatefinanceinstitute.com/resources/knowledge/economics/embargo/