American producers often complain about dumping. What is dumping, and should it be prohibited?
What will be an ideal response?
Dumping refers to selling exports at a price below what the product sells for in the home country. Consumers should cheer for low prices. Producers are unhappy, since they cannot compete or don’t want low prices. We should allow dumping to take advantage of low prices and exporting goods in other industries to the dumper. However, we might also need to take into account the potential for predatory behavior through product dumping. If foreign producers sell products in the United States for an unreasonably low price, perhaps below their own cost, they could force competing U.S. producers out of business. Once the U.S. competition is eliminated, the foreign producers would be likely to exercise monopoly power and raise their prices.
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Suppose there currently is an inflationary ga
A) Reduce government spending. B) Increase government spending. C) Reduce the nation's aggregate supply. D) nothing
Two candidates, Smith and Jones, are running for the same political office. Last night they were in a debate. It is generally accepted that Smith is perceived more to the left after the debate than before the debate. This is bad news for Jones if before the debate Smith was perceived
A) too far right. B) too far left. C) as being in the middle of the political spectrum. D) b or c E) none of the above
How is the market for capital affected by higher prices?
a. More owners will supply capital. b. Fewer owners will supply capital. c. The supply will remain the same. d. The price will increase demand.
The required reserve ratio is the:
a. actual amount of reserves that banks must hold. b. excess amount of reserves that a bank must hold. c. minimum amount of reserves the Fed requires a bank to hold. d. total amount of reserves that banks hold at all times. e. maximum amount of reserves that banks can hold to remain liquid.