Suppose that in response to a threatened antidumping duty of t, the Foreign monopoly raises its price

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Suppose that in response to a threatened antidumping duty of t, the Foreign monopoly raises its price by the amount t.

a. Illustrate the losses for the Home country.

b. How do these losses compare with the losses from a safeguard tariff of the amount t, applied by the Home country against the Foreign monopolist?

c. In view of your answers to

(a) and (b), why are antidumping cases filed so often?

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International Trade

ISBN: 9781429278447

3rd Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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Question Posted: Nov 11, 2024 06:00 AM

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Suppose that in response to a threatened antidumping duty of t, the Foreign monopoly raises its price

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International Trade

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