Figuring out if Chinese solar panel manufacturers are dumping in the US

An article in the New York Times (May 16, 2012) describes possible countries whose cost structure could be used to estimate costs in China. In the past, costs in India i.e., labor, material, rent, electricity have been used as a surrogate. But recent US Commerce department rulings have listed Thailand, Colombia, Ukraine and the Philippines as surrogate cost estimation sources. The US solar industry now demands that costs in Thailand be used to decide if the Chinese solar panels are being dumped. But Chinese manufacturers now demand that the economies of scale of solar panel production suggest that India should be used as a basis. Is there a fair process to estimate costs using other country data and should that country be declared in advance ? Is it reasonable to shift the basis country depending on the product ? How should economies of scale of production be combined with the country’s cost structure in general to determine suitable basis cost structures ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

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