Responding to a case brought by the Dillon Corporation, Florida of U.S., for the purpose to expand China paper anti-dumping tariff, the U.S. Commerce Department announced it was imposing a tariff of 99 percent on imported glossy paper from China. Glossy paper is the type of paper used to manufacture art books, high-end magazines, textbooks, and annual reports. In 2016 imports of glossy paper from China was estimated to be $224 million.

a.What is dumping? (2marks)

b.Who in the U.S. loses from China's dumping of glossy paper? (2marks)

c. What argument might Dillon Corporation, have used to persuade the U.S. Commerce Department to impose a 99 percent

tariff?(3marks)

d.Explain who, in the United States, will gain and who will lose from the tariff on glossy paper. How do you expect the prices of magazines and

textbooks that you buy to change? (3marks)