An Italian sunglasses manufacturing company manufactures women's sunglasses in Italy and sell them to a wholesaler in Italy for a price equivalent to CAD$18.00. This price is sufficient for the manufacturer to cover all costs and recover his usual percentage of profit.

The same Italian manufacturer sells the sunglasses to a wholesaler in Canada. The extra cost of export to Canada (covering packing, shipping, insurance, customs duties, and handling) is C$1.00 per pair.

A Canadian manufacturing company manufactures an equivalent pair of sunglasses in Canada and sells to the Canadian wholesaler with the usual allowance for profit to the manufacturer is C$25.00 and appears in retail shoe outlets priced from C$30.00 to C$35.00.

Question 1(13 points)

Please provide detail analysis whether dumping has occurred in the following examples:

Question 1.The Italian manufacturer sells the sunglasses to the Canadian wholesaler for C$17.00 per pair.

Question 2.The Italian manufacturer sells the sunglasses to the Canadian wholesaler for C$20.00 per pair.