The article stated that Malaysia government intended to impose tax on steel wire rod that imported from foreign countries. (M’sia to impose 2013). According to the article, the enforcement of this regulation will be effective five year from February 20, 2013. This implementation is aim to protect the domestic manufacturer of steel wire rod.
(M’sia to impose 2013). Firstly, the article shows that Malaysia Government has attempted to prevent dumping issues that occur in domestic steel wire rod market. Dumping is defined as selling of product in foreign market below domestic market prices. Fletcher and Heather 2011, 141).As a result from dumping, Malaysia Government imposed the anti-dumping duties in steel wire rod that import from foreign countries to protect local manufacturer.
(M’sia to impose 2013). Next, Malaysia government acts as regulator in tackling the dumping problems. Regulator often planned the economy activities in the countries. (Fletcher and Heather 2011, 117).
For instances, Malaysia government regulates the duties on import steel wire rod to offset the price. Eventually, this will result in higher barrier for foreign firms to export steel wire rod to Malaysia. M’sia to impose 2013). As a conclusion, it is important for foreign firms to know the latest regulatory activities by government in international markets. This is to minimize the risk for international firms when conducting business in foreign market.
(198 words) References Fletcher, Richard, and Heather Crowford. 2011. International marketing : an Asia-Pacific perspective. Frenches Forest: Pearson Australia. M’sia to impose anti-dumping duties on steel wire rod. 2013. The Star Online.
http://biz. thestar. com. my/news/story. asp? file=/2013/2/19/business/12729688&sec=business.