A marketing perspective of the U.S. International Trade Commission's antidumping actions - An empirical inquiry

Antidumping laws can have a profound effect on both domestic and international firms and are increasingly used by nations around the world to reduce competition in domestic markets. In the United States, the International Trade Commission (ITC) is a key governmental agency which determines whether or not to impose antidumping measures on imports and the types of measures to impose. This paper analyzes some of the key factors affecting the antidumping decisions taken by the ITC. The data were gathered in a systematic and comprehensive review of the original case and investigation ledgers of the Commission for all full case investigations conducted from 1980 to 1992. Principal findings are that large firms can use the antidumping process to obtain strategic shelter from foreign competitors even under conditions of growing markets, while smaller firms in more atomistic industries are likely to gain such shelter only in instances of market decline. In addition, current import penetration ratios appear to influence the decision process, while Japanese and other Asian origin of imports seems to have little effect on the outcome. Given the linkages identified, several strategic responses useful to managers are identified.