Chapter 6: The Political Economy of International Trade
{"Image DocumentName": "Chapter 6: The Political Economy of International Trade", "Image ImageDescription": "Antidumping Policies. Dumping is defined as selling goods in a foreign market below their costs of production, or as selling goods in a foreign market at below their fair market value. Dumping is viewed as a method by which firms unload excess production in foreign markets. Some dumping may be predatory behavior, with producers using substantial profits from their home markets to subsidize prices in a foreign market with a view to driving indigenous competitors out of that market, and later raising prices and earning substantial profits. Antidumping polices (or countervailing duties) are designed to punish foreign firms that engage in dumping and protect domestic producers from unfair foreign competition. Management Focus: U.S. Magnesium Seeks Protection. Summary. This feature explores the dumping charged levied by U.S. Magnesium against Chinese and Russian producers. According to U.S. Magnesium, the sole American producer of magnesium, Russian and Chinese producers were selling magnesium significantly below market value in an effort to drive U.S. Magnesium out of business. The company failed a complaint with the International Trade Commission (ITC) which ultimately ruled in favor of U.S. Magnesium. Suggested Discussion Questions. 1. What is dumping? Were Chinese and Russian producers guilty of dumping? How did U.S. Magnesium justify its claims against Russian and Chinese producers? 2. What does the ITC\u2019s ruling mean for American consumers of magnesium? In your opinion, was the ruling fair?", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}