Hong Kong or Malaysia and also consider the U.S. for assembly options. Targeted trade barriers can be easily overcome with a little creativity and are more often times used to punish industries or for unnecessary reasons. 5. Reread the Management Focus “Protecting U.S. Magnesium.” Who gains most from the anti- dumping duties levied by the United States on imports of magnesium from China and Russia? Who are the losers? Are these duties in the best national interest of the United States? a. Gaining the most from antidumping duties would be the domestic companies who cannot produce the items for as low of cost as they could import them. The losers are the foreign companies who have excess to sell and can price them lower than industry standard. They need to regain footing and the antidumping duties don’t allow this. These duties are concluded to not be in the best national interest of the united states. They promote inefficiency and push out growth of foreign companies, they could potentially trigger trade wars, and are likely to be improperly implemented. There duties do not promote globalization. Case Discussion Questions: Sugar Subsidies Drive Candy Makers Abroad 1. Who benefits from subsidies to U.S. sugar producers? Who loses? a. Farmers of sugar beets and cane benefit from subsidies because the U.S. has made it impossible for them to fail. U.S. citizens, foreign producers, and small candy makers are the losers. Only 15% of the market is allocated to importing foreign sugars, creating a disadvantage. U.S. consumers also paid 64-92%hgher prices for sugar between 2010-2013.
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- Fall '11
- International Trade, New trade theory