Hostname: page-component-848d4c4894-x5gtn Total loading time: 0 Render date: 2024-05-30T02:20:06.767Z Has data issue: false hasContentIssue false
  • English
  • Français

The Ethics of International Trade: Use of Deviation from Average World Price to Indicate Possible Wrongdoing

Published online by Cambridge University Press:  23 January 2015

Karen Paul ,
Simon Pak ,
John Zdanowicz  and
Peter Curwen
Get access Rights & Permissions [Opens in a new window]

Abstract:

The measure proposed here, the ratio of the price reported in a given trade to the average world price for that commodity, is based on the average world price for a given commodity reported for all trades between the U.S. and all other countries for a given period. This new measure can be used to enable government agencies to identify trades between U.S. firms or individuals and their counterparts in other countries which are designed to further prohibited activities such as money laundering or tax avoidance. This measure would also enable the U.S. government to monitor trade flows more accurately, facilitating more analysis of trade imbalances between countries and tracking trade in strategic materials, for example, weapons. Use of this new measure could enable naive buyers and sellers of goods, for example, those situated in remote or underdeveloped markets, to know what their counterparts in more central and informed countries are paying or being paid for comparable goods, and hence to become more informed as trading partners.

Type
Articles
Information
Business Ethics Quarterly , Volume 4 , Issue 1 , January 1994 , pp. 29 - 41
Copyright
Copyright © Society for Business Ethics 1994

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Donaldson, Thomas. 1989. The Ethics of International Business. New York: Oxford University Press.Google Scholar
Hansen, Don R., Crosser, Rick L, and Laufer, Doug. 1992. “Moral Ethics v. Tax Ethics: The Case of Transfer Pricing Among Multinational Corporations,” Journal of Business Ethics, 11:9 (Sept.) 679–686.CrossRefGoogle Scholar
Hubbard, Catherine. 1992. “Transfer Pricing Siphons Billions in Revenues, MTC Official Charges,” Tax Notes # 56 n5, (Aug. 3) 546–547.Google Scholar
Matthews, Kathleen. 1992. “Could the U.S. Really Raise $45 billion from Foreign Firms?” Tax Notes # 56 n5, (Nov. 2) 577–579.Google Scholar
McCawley, Harrison B. 1981. “Providing Access to Foreign Based Records as the Price for Entering the U.S. Market: Section 6038A and 6038C,” Tax Management International Journal, 20:1 (Jan. 11) 1981 3–15.Google Scholar
Short, Lara W., Colvard, Robert G., and Lee, John T.. 1992. “The Liability of Financial Institutions for Money Laundering,” Banking Law Journal, 109:1. (Jan/Feb) 46–70.Google Scholar
Varman-Schneider, Benu. 1981. Capital Flight from Developing Countries. Boulder, Col.: Westview Press.Google Scholar
Velasquez, Manual. 1992. “International Business, Morality, and the Common Good,” Business Ethics Quarterly 2:1 (January) 27–40.CrossRefGoogle Scholar
Weiner, Benjamin. 1991. “Unmasking the Money Launderer,” World, 25:3 (March) 42–46.Google Scholar