Title of Dissertation - Free trade vs.

protectionism

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“Dumping versus anti-dumping – An analysis of international trade
practises in India”
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Overview of the company or market sector

The main aim of the project is to analyse the strategic practices employed by the
Indian international trade organisations to grow their business and to evaluate the
aspects or consequences of the practises as of positive or negative.
There is a reason behind selecting this topic as a subject of this research. The
developing countries like India has got a great potential in manufacturing,
assembling and recycling of the metal and its scrap and when a country has a good
increasing potential market there are major chances of over production or increase in
the inventory. Thus to get out of the situation usually the organisations sells that
product at a cheaper price then its original domestic market price in the international
foreign markets is termed as ‘dumping’. It has both the positive consequences as
well as negative consequences. The government which thinks it has a negative
impact in their domestic market often creates laws and regulation to control the
imports of such products and is termed as ‘anti-dumping’. The main thing which
made me to choose this as a research topic is that it is an ever growing business
and has got an out landing potential in monetary terms. Every government and the
organisation need money to operate its business and aim to earn profits. If any
organisation of any country has produced more than it market size then what is
wrong in selling it to foreign countries for the cheaper price rather than wasting it as
an inventory, where as what is wrong in accepting any product cheaper than its
domestic market price in the importing country. This also made me think that is there
any profit of government in imposing and duties on imports.
This question is full of tactics and encouraged me to do research in this subject
topic. One reason of choosing the metal scrap industry is that I have seen my
brother working in this business firms in India and was always enthusiast to this
business in future. By doing an in-depth research in this subject area, one will get a
clear picture of what the term international trade stands for and what are the
strategies one must employ to grow its business to a new level with the knowledge of
how dumping can be helpful or can be harmful to use. It will help one to take smart
decision regarding dumping particularly metal scrap and how to utilize the anti-
dumping laws regulated by the government, which will be very helpful in doing
business sharply.

Literature review-
International trade is the exchanges of goods and services between countries. This
type of trade practices gives rise to the world economy. There had been a
tremendous growth in the world trades of 5 percent every year that shows the
potential of the market. The industries indulge in these businesses uses different
business strategies to grow their business and earn big profits. There are various
strategies included to promote the product and to sell it by any means and most
important we are going to talk about is dumping strategy. Dumping is a strategy
where the goods are exported at a price lesser then its normal or domestic price or
less then its production cost to other countries. Reason behind dumping is that firms
often have less competitors or less to fear from competitors in the domestic market
and so sell the product at higher price in the domestic market. While in the foreign
market they have competitors big enough so they sell there at a lower price. Or in
opposite if a firm produced more and can’t sell all of products in the domestic market
then they tend to sell those products in the foreign market at any cost so that they
can get something out of nothing. In first case it is lose to domestic country, and in
second it is lose to importing country, as they will have a bigger competitor and will
harm the domestic market of the importing country.
This strategy of dumping is not illegal but if any industry of the country if facing the
problem due to this then they tend to regulate the law to control this dumping
strategy, which is termed as anti-dumping. In this the government of the exporting
country imposes quota to control the exports i.e. the exporters will have the limit in
quantity of exports to any country and excess of the limit is not possible, this quota
policy helps the government to control exports and to control the prices of the
product in the domestic market. By this policy the product is made available to the
domestic consumers and also on a competitive rate. On the other side government
imposes duties on the imports of any products from foreign country. By imposing
duties government can control the imports of any particular products. It can decide
the price of the product through imposing import duty on it to make it equivalent to
the domestic price of the importing country. This strategy helps the domestic players
to make a place in the market and the import duty protects them from any harm from
the imports from foreign country imports.
So the dumping strategy is not illegal but can be controlled by regulating laws for
anti-dumping and this business strategy is used in every businesses including metal
and scrap industry. But in this industry rules are made according the metals and its
property. If it is radioactive metal then in some countries it may be illegal to import or
in some countries heavy import duties are imposed. But in other metals there may be
a quota for exports or duties on imports, So that the countries can control the
transportation and can control the price of the product in the home country. The
international businesses are in practice since a long time but the dumping and the
anti dumping strategies are still developing in the countries like India.

Research question/objective-
Aim-
The main aim of this research is to get in-depth knowledge about the international
trade in the metal scrap industry and to analyse the different ways of dumping in the
metal scrap industry in India and how can it be controlled.
Objectives-
 To study in-depth on how the international trade works and to study
generalised concepts on the international trade.
 To study the concept of dumping and anti-dumping.
 To evaluate the strategies used for dumping in India.
 How these strategies or practices can be controlled through anti-
dumping rules.
 To evaluate the current rules and regulations imposed by the Indian
government and to study them to know where is the error.
 To analyse the best strategies employed around the globe and
enhance the strategic competence of the Indian constitution.
Research methods-
The dissertation is a piece of research work done on a particular topic in a particular
subject area. The research is all about investigating on a particular topic and to
evaluate and analyse the closely associated terms. It helps to get deeper into the
topic to get something new from that subject. The research methodology is a
explaining in brief about the different research methods and also provides a vision to
which research method are going to be used to conduct the research further. It also
provides the picture that how they can help to analyse any data.
The present research is on analysing the strategy of dumping in different countries
and what are the remedial actions taken to control them through imposing rules and
regulation. Through this research will help us know that after imposition of the rules
and regulations also on the trade practices it is not controlled and what further
actions can be taken to control it.

Primary research/Primary data collection-

The method in which the data is collected directly from the researcher or is collected
first handed it is called as the primary research method/ primary data collection.
There are various methods for collecting the first hand data in the primary research.
Among those various methods, this research will be conducted through the survey
method or the questionnaire method. Survey would be done through interviewing the
company officials working in the metal and scrap industry. I have known to the
organisation named ‘Mehta trading corporation’, they are into this business since a
long time and are facing these types of problems. They have offices in different
countries including one in London named Multilink pvt. Limited, it is a subsidiary firm
of the parent company in India.
Questionnaire survey will be done in this project, where various optional questions
will be formed and will be given to different authorised persons to answer.

Secondary research-
In secondary research, data will not be collected directly and in fact it will be
collected from different external sources. As the data required is collected indirectly,
it is termed as secondary data. Literature review is one of the important methods that
come under the secondary data collection/secondary research. This method will be
used to collect secondary data. Literature review in the form of book of the reputed
authors, journals, newspaper articles and internet databases which are collected and
the required information will be used to analyse and understand.

Discussion and analysis-

This is one of the most interesting part of the research and the data collected by this
means have both the negative and the positive aspects as it depends on the
perception of the person. Here what data we get can be used to analysis what the
journal public thinks about the problem and according to them what are the possible
solution to the problem aroused in the discussion. It will be drafted between the
officials of the organisations working in the metal and scrap industry and with the
students studding international business and have some knowledge on this topic and
can light it up.
Gantt chart:

S. No. Task Start date End date

1 Proposal Preparation  29/05/11  05/05/11

2 Acceptance of proposal  07/05/11  07/06/11

3 Review of the articles  20/06/11 20/06/11

4 Conclusion on the review  22/06/11  28/06/11

6 Introduction start  29/06/11  10/07/11

7 Complete intro  12/07/11  20/07/11

8 Complete Literature search  20/07/11  20/08/11

9 Research methodology start  21/08/11 10/09/11 

10 Distribution of Questionnaires  11/09/11 20/09/11 

11 Collecting data  20/09/11 01/10/11 

12 Conducting Interviews  02/10/11  18/10/11

13 Complete Research methodology  19/10/11  10/11/11

14 Classification of data  11/11/11  20/11/11

15 Data Analysis  21/11/11  30/11/11

16 Recommendations  01/12/11  10/12/11

17 Conclusions  11/12/11  20/12/11

18 Dissertation Submission  10/01/12  16/01/12