International Trade - Dumping
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a. Why is an exporter who builds market share at risk of being accused of dumping?
b. Why is the steel industry in the United States so opposed to dumping?
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a. An exporter who builds market share is at the risk of being accused of dumping because the antidumping authority may be biased and there are different ways of determining production cost. The Case Study gives the example of the South African government that determined that the US firm Tyson was dumping by a margin of 200 percent. Its export price was only one-third of its estimated production cost. Another company Gold Kiss was dumping by a 367 percent margin. The product was dark meat chicken exports. These companies were trying to legitimately create an export market for dark meat chicken. The local producers of chicken fell threatened and they applied to the ...
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