please give me the correct answer, thanks. The anti-dumping argument is among th
ID: 1210569 • Letter: P
Question
please give me the correct answer, thanks.
The anti-dumping argument is among the most consistently used justifications for restricting imports to the United States. Dumping occurs if a foreign firm sells products in the United States for significantly less than the sales price in the foreign firm's home market or for less than it costs the foreign firm to produce the good. Anti-dumping restrictions impose tariffs or quotas on the goods of foreign firms suspected of dumping. Although dumping undoubtedly occurs from time to time, the inappropriate use of anti-dumping restrictions abounds. U.S. firms in import-competing industries may petition the government to label low-cost foreign competitors as "dumpers" in hopes that the government will restrict competing imports. All too often, the claim of dumping will be applied to any foreign firm that manages to beat domestic competitors on price. By keeping low-priced foreign imports out, trade restrictions benefit U.S. firms in protected industries, but they also translate into higher prices and fewer options for U.S. firms and for consumers that purchase the protected products. Read the article from the Milwaukee Journal Sentinel (June 29, 2008) in the box, and then answer the questions that follow Hung-Up on Hanger Tariffs By Avrum D. Lank, Milwaukee Journal Sentinel June 29, 2008 The price of coat hangers is taking laundry operators to the cleaners Since March, when a tariff was imposed on hangers from China, their cost has skyrocketed Source: SXC.hu. "It happened like overnight," said Shirley Carlson, who has owned the Shorewood Queensway Dry Cleaners since 1977 "The cost has doubled." However, the pain being felt by Carlson and other dry cleaners is turning into pleasure in Monticello, a small Green County community southwest of Madison. There, a hanger plant that closed as the Chinese came to dominate the market has reopened, with management in the process of hiring 20 workers to add a second shift.Explanation / Answer
Answer: Asking their customers to return wire hangers
Explanation:
This article has focused on the recent problem arised in the increasing cost of dry cleaning after US has imposed import tariffs on wire hangers from China. This situation has created a problem for dry cleaners due to increasing cost of dry cleaning which is affecting their business and profits a lot and the only way out they have concluded is asking customers for unused hangers. The reason behind this imposition of tariff was the non legal dumping activity which China was doing and these allegations were raised by American producers. The U.S. International Trade Commission found that China was dumping wire hangers in the U.S. market. So due to this serious problem the dry cleaners suggested a solution, as wire hangers are getting expensive due to import tariffs on cheaper hangers from China, therefore dry cleaning operators are asking customers to return their hangers to help them keep the cost controlled and down.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.