Whirlpool Washers Case


Whirlpool has been involved in a trade dispute with South Korean manufacturers LG and Samsung, alleging that they are being unfairly harmed by the South Korean companies. Whirlpool claims that Samsung and LG are using unfair trade practices by illegally undercutting prices on washing machines sold in the United States by selling the units for less than their production cost.

For this week’s discussion, prepare 4–5 paragraphs about this dispute. Consider for your post:

* How can Samsung and LG profit by selling their products for less than production cost?

* What remedies do you think the International Trade Commission (ITC) will recommend?

* Imagine you are selling a product, which currently has no tariff, to Canada or Mexico. How could you sell to Canada or Mexico for much less than the sales price in the United States and still make a profit?

* Discuss how some U.S. companies may suffer unforeseen negative consequences if a tariff on washing machines is imposed. What companies may be hurt, and how?

* Are you aware of any U.S. products that are known to be sold for less in foreign countries than the United States? If so, mention them in your posting.

The following articles provide in-depth information about the dispute.

* Yu, R. (2017, June 1). Whirlpool says LG, Samsung dumping washers: Appliance maker asks Trump administration for import barriers. USA Today, B4.

* Packard, C., & Arnold, B. (2017, October 17). Broken trade laws and rising protectionism: Whirlpool fights imports, but who are they really helping? The Examiner.