U.S. steelmakers seek antidumping action Steelmakers want the United States to p
ID: 1121487 • Letter: U
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U.S. steelmakers seek antidumping action Steelmakers want the United States to put restrictions on imports from five nations alleging untar pricing of steel for the automobile and construction industries Source Walr Street Journal, June 3, 2015 What is dumping? Who in the United States loses from China's dumping of steel? Dumping occurs O A. whenever the world price is greater than the price of production Who in the United States loses from the dumping of steel? whenever a firm wants to dominate the world market when labor in a foreign country lowers the cost of production below that in an advanced economy when a new industry sends inferior goods to third-world countries when a foreign firm sells its exports at a lower price than its cost of production A. US, lobbyists O B. US producers of steel and U S workers in the steel industry O c. 0 D. US consumers of steel and U S producers of steel O E US consumers of steel B. of C. the u s. government O D. 0 E,Explanation / Answer
1. E) when a foreign firm sells its exports at a lower price than its costs of production.
Dumping is an example of price discrimination. As we know price discrimination is practice of charging different customers different prices. The most common form of P.D in International Trade is dumping. Dumping is a pricing practice in which firm charge lower price for exported goods and sell same commodity at higher price domestically.
2. B) U.S producers of steel and U.S workers in the steel industry.
Due to dumping, U.S producers lose because demand of their product falls due to higher prices as a result, workers also loses because demand of labor decreases.
3. E) number of Indians living on less than a dollar a day will increase.
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