The Top Ten Management Primer on Administrative Policies: All That You Need to Know About Governmental Rules to Protect The Domestic Market

Info: This review of the top ten things you need to know about Administrative Policies was prepared by Kevin Patton while a Business major in the College of Business at Southeastern Louisiana University in Hammond, Louisiana.

Introduction

Administrative policies are rules used by governments to restrict imports or boost exports. Mainly, these are means used to protect the domestic or home market by slowing or stopping goods made in foreign counties which could hurt domestic companies. Unfortunately though, in the end, these restrictions of imports sometimes hurt the consumer who are denied from obtaining foreign-made products that could be possibly be superior to the domestic-made ones.

One type of administrative policy for international trade is for anti-dumping. Dumping is the selling of goods (sometimes goods from excess production) in a foreign market at below the cost of production or at less than fair market value of those same goods created in the domestic market. This predatory behavior hurts domestic businesses and can even drive home companies out of business.

Anti-dumping policies are created by governments to protect their markets from dumping by foreign markets. If a domestic producer believes that a foreign company is dumping product into their market, then it can file a petition with the two governments involved. If the complaint is deemed true, then a special tariff, called countervailing duties, can be put into place against the foreign company’s products; thus the prices of both products are made competitive.

The Idea in a Nutshell

Administrative Policies are trade rules made to limit foreign-made goods. These rules are created by bureaucrats of a government to protect the home or domestic producers from foreign-made goods.

These policies are used to keep prices of both countries competitive. Even though they are meant to protect domestic companies from being harmed or even ruined, the consumer is usually hurt as they are denied possibly superior products made in foreign countries.

The 10 Things You Need to Know About Administrative Policies

1. Administrative policies are rules used by governments to restrict imports or boost exports.

2. These policies are means used to protect the domestic or home market.

3. Increased of the sale of goods made in foreign counties could hurt domestic companies.

4. These restrictions of imports sometimes hurt the consumer. Consumers are denied from obtaining foreign-made products that could be possibly be superior to the domestic-made ones.

5. One type of administrative policy for international trade is for anti-dumping.

6. Dumping is the selling of goods in a foreign market at below the cost of production or at less than fair market value of those same goods created in the domestic market.

7. Dumping is a predatory behavior that hurts domestic businesses and can even drive home companies out of business. Foreign companies can sometimes dump excess-produced goods.

8. Anti-dumping policies are created by governments to protect their markets from dumping by foreign markets.

9. If a domestic producer believes that a foreign company is dumping product into their market, then it can file a petition with the two governments involved.

10. If the complaint of dumping is deemed true, then a special tariff, called countervailing duties, can be put into place against the foreign company’s products; thus the prices of both products are made competitive.