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Read the case and answer the questions - Essay Example

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The product sold in the United States and Japan is identical for duty analysis. The salmon sold in United States is of Premium quality and that sold in Japan is of super premium quality. An investigation done by The U.S. Department of Commerce found out that salmon…
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Business Essay The product sold in the United s and Japan is identical for duty analysis. The salmon sold in United sis of Premium quality and that sold in Japan is of super premium quality. An investigation done by The U.S. Department of Commerce found out that salmon industries do not recognize any grade above premium and the salmon graded as super premium were actually premium. The products were thus of the same value. This shows that there were no differences between the products sold in the two markets.2. Dumping occurs when a product is sold at a lower price in a foreign country than the price of the product in its home country.

It endangers the industries in the importing nation and thus negatively affects the economy of the country. ( Pattison 463) It is legal in the rules of World Trade Organization unless a country is able to proof its negative consequences. Dumping occurred in the United States market. The Chilean salmon exporter sold super premium products at a higher price in Japan and the premium products to United States at a lower price. After investigation the two products were of comparatively the same value.

The two products were of the same value yet sold at different prices. The one sold at U.S. market was being sold at a price less than its fair value. Work Cited Pattison, Joseph E. Antidumping and Countervailing Duty Laws. Eagan, Minn.: Thomson/West, 2003. Print.

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