1. Using a fictitious (made-up) example explain the process and the reasons behind Dumping (with respect to international trade).

1. The Government of India made several regulations to limit the growth of Amazon in India. Explain 3 advantages and 3 disadvantages of these regulations.

1. Hypothetical case:

The US gives tax breaks (0% taxes) to Fertilizer manufacturers in the US.

Country X, in South America, objects to these tax breaks. Why do you think X objects to these tax breaks? What are some measures X can take in this scenario?

1. An iPhone costs $600 in the United States and 900,000 CLP (Chilean Pesos) in Chile. The currency exchange rate is 1 USD= 900 CLP

a) What is the cost of the iPhone in the United States in Chilean Pesos?

b) What is the cost of the iPhone in Chile in US Dollars?

c) Is there an Arbitrage opportunity? If yes, where would you buy the phone and where will you sell it?

d) What is the Maximum Profit in both, US $ and CLP, you can make if you take advantage of the arbitrage opportunity? What are 3 reasons why this profit will be reduced?