China as one of the world’s largest  manufacturing country, is again accused of dumping products on the international market, which means selling it below the production price.

This time, 25 solar gear producers in Europe have filed complaints to the E.U. about Chinese companies selling the products to other markets at a lower price than they charge in China; rather making losses just to drive out competitors out of the market. The US has also been taking similar actions against Chinese solar panel producers.

But why can’t China just simply have a comparative advantage in manufacturing products, thus being able to sell them at a lower price? Dumping or not is very hard to determine but its seems like China is blamed every time they have an advantage in competing on the international market. Labour is cheap in China, and I think its very reasonable for them to be able to produce something at a lower cost. If China is capable of competing by selling products cheaper, even if it means making loss, why can’t they? Its not the problem of China or Chinese companies that firms in other countries are not able to do the same.

Source: http://www.mercurynews.com/business/ci_21484201/eu-anti-dumping-probe-into-china-solar-panels

Picture: http://www.renewablepowernews.com/archives/3212

Paying workers, especially when they are working overtime seems like a very natural thing, but seems like Wal-mart has a different view on it.  As one of the biggest retailers and companies in the World, Wal-mart does not have a good reputation when talking about  salaries and working hours.

According to abc News, former Wal-mart employees has filed a suit against against the firm for forcing them to work overtime without actually paying them. Maria Gamble says that when she worked there, she and other workers would be regularly locked in the store to restore merchandise and count out the cash registers that could take up to two hours.

Wal-mart is also charged for making workers to work during breaks, meaning working more than 10 consecutive hours daily for only one additional hour of minimum wage pay.

Wal-mart’s spokesman Bill Wertz does not give specific information about the suit’s allegations. He says : “This is directly contrary to our policy, and any supervisor who violates our policy is subject to disciplinary action, including termination,”

Looks like at Wal-mart, not only prices are low but wages too. What could be their managers’ view on stakeholder theory?

Source: http://abcnews.go.com/Business/story?id=87844&page=1#.UFD02rKTtD0

Picture: http://shs.umsystem.edu/historicmissourians/name/w/waltons/index.html

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