International Economics
16th Edition
ISBN: 9781305887633
Author: Robert Carbaugh
Publisher: Cengage Learning
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In the context of international dumping, which of the following statements about the price- or cost-based definitions of foreign market value are correct? Check all that apply
A. Governments often reward foreign companies that dump commodities in the home economy at a price that is less than average total costs.
B. According to the cost-based definition, dumping occurs when foreign merchandise is sold in the domestic market at less than fair value.
C. According to the cost-based definition, dumping occurs when foreign merchandise is sold in the domestic market at more than fair value.
D. According to the priced-based definition, dumping occurs whenever a foreign firm sells a product at a price above its home market price
Domestic demand for natural gas in a small economy is characterized by the equation P= 350-5Q, domestic supply is characterized by the equation (Q= 0.5.P+ 35, and the world price is equal to $60. An export tariff of $6 per unit will
result in a net welfare loss of 14.6
lead to an export level that is less than half of the original amount
lead to a loss in consumer surplus
result in tariff revenue that is larger than the loss in producer surplus
Analyze how anti-dumping law protects local industry.
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