July 21st, 2018

Regulation Regular analyzes actions of government agencies with an explanation and examination for stratagem or opportunity.

In an effort to find opportunity for entrepreneurial and investment efforts, I have begun to monitor more actions from governmental agencies regarding regulations.  This segment aims to highlight interesting developments in the business environment including competitors, regulations, or interesting occurrences.

THIS IS NOT LEGAL ADVICE.  THIS IS COMMENTARY ON REGULATION.

Regulations can be a source of opportunity as they make a major part in the determination of barriers to entry.  An industry or practice is difficult to enter if there is a significant amount of regulative procedures and requirements, versus when restrictions are removed an opportunity may be present.  In this way we are doing our small part to encourage an informed people.

We start from modest beginnings but hope to be more encompassing eventually!

Explanation

The anti-dumping investigations is moving forward.  The International Trade Commission (ITC) and the Department of Commerce has issued anti-dumping orders on fine denier polyester staple fiber, from the Republic of China, Republic of Korea and Taiwan.  The United States regulatory agencies have found that an industry was being injured material-wise.

The Tariff Act was established in 1930.  This alert is after the published final determiniations from investigations into less-than-value on May 30th, 2018, regarding fine denier PSF from China, India, Korea and Taiwan.  China received the highest percentages estimated weighted-average anitdumping duty margins and cash deposit rates being between 68% for specific entities up to 103% for China-wide entity, Korea between 30% and 45%  with no cash deposit percent, India 21.43% and 15% deposit, and Taiwan at 24% and no cash deposit.  Two organizations from Korea and Taiwan are exempt from the antidumping duty orders.

Impacts

Price Dumping

Is a pricing strategy for developing, manufacturing or 3rd world countries.  It is the when manufacturers abroad purposely importing products at a lower than a competitive or market price.  In the past, this was popular with organized crime; purposely using cheap labor to manufacture items at such a low cost, they could afford to sell them at lower than the normal price of the market.  It has more than a few impacts.  This is an illegal pricing strategy.

• Stresses controls and institutions within an economy.  In the past, the United States made the decision to be against monopolies and establish an institution that decided competition in certain services was healthy and necessary.  The government needs to be clear and efficient in protecting the economy with policies and politics.
• Pricing Controls are important to maintain margins.  Organizations in the United States are expected to have good qualities in the workplace and benefits to workers; it costs more to maintain operations out here than in other places.  Similar pricing strategies exists with distributor agreements which help coordinate fair practices among many retailers for one manufacturer.
• It is threatening because it lowers the price floor below what is fair in the market and allows demand to be met without compliance to regulations and legal market entities.
• Funds that do not support an american organization that supports american policies, erode faith, cooperation and endanger support of regulations.

Regulations are an opportunity or risk for  organizations hoping to engage in business.  Regulations are in place to protect market and law abiding entities.

We start from modest beginnings but continue to identify, develop, and research opportunity and strategy for entrepreneurs, to better develop business ideas.