Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

The small island state of Boga, which comprises about 2 million inhabitants, has recently been recovering from a civil war. Boga suffered severe economic decline

The small island state of Boga, which comprises about 2 million inhabitants, has recently been recovering from a civil war. Boga suffered severe economic decline throughout the civil war. The country's companies and other businesses also closed down as the civil war disrupted manufacturing. Its infrastructure was also totally damaged. Following the war, the incumbent government of Boga is striving hard to rebuild the country back up and give hope to its citizens. The government is doing this with the assistance of external donors, including the government of Canada and Canadian non-governmental institutions. To stimulate the economy and make a fresh start, the government of Boga is providing various incentives to businesses in the country to enable them to hire staff, train them and produce goods for both the domestic economy and the international marketplace. One of the companies receiving assistance from the government of Boga is syntax electricals which makes light bulbs and other electrical items. The assistance that the government of Boga provides to syntax - over five million dollars for an initial 4-year period - is helping the company to rebuild their factory, which was destroyed during the civil war, as well as to cover production costs so that the citizens of the country can buy syntax's products at cheap rates. To ensure that syntax has sufficient leverage to produce enough electrical products for boga's domestic economy, the government has provided additional tax incentives for the company and placed restrictions on imports of electrical products. Only licensed companies in Boga can import those products into the country. because of the incentives it receives from the government of Boga. The syntax can sell its products at lower prices both domestically and internationally. Products of other electrical companies cannot compete with syntax because of the basement rates at which it sells its products. for example, while it costs syntax $3.50 to produce a single led bulb, they sell it at the rate of $2.00 in boga. among the countries that syntax exports its electrical products is vietnam where syntax's products are competing with those locally manufactured in vietnam. syntax's led bulbs are sold in vietnam at the rate of $3.00 after making the usual allowance for shipping and handling charges. the vietnamese manufacturers - whose led bulbs are sold at the average rate of $4.50 each - are worried that they may be unable to compete with syntax whose electrical products come in cheaper than those manufactured in vietnam. they are of the strong opinion that syntax is dumping its led bulbs in vietnam. both boga and vietnam are members of the world trade organization.answer the following questions .

Question: Do you agree with the vietnamese electrical products manufacturers that syntax is dumping its led bulbs in the vietnamese market. what actions can the government of vietnam take under the wto rules to protect its companies from syntax's alleged dumping actions?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: N. Gregory Mankiw, William M. Scarth

5th Canadian Edition

978-1464168505

Students also viewed these Law questions

Question

How flying airoplane?

Answered: 1 week ago