Suppose that Far North Canadian Lumber, Ltd., sells lumber in Canada at a price of $1,000 per 1,000 board feet and exports the same lumber to the United States at a price of $600 per 1,000 board feet. U.S. Lumber, Inc., produces and sells lumber for $700 per 1,000 board feet in the United States. What other condition must be satisfied in order for the U.S. government to impose an antidumping duty on Canadian lumber imports?
a. There must be material injury to a Canadian lumber producer.
b. There must be material injury to a U.S. lumber producer.
c. There must be material injury to both a U.S. and a Canadian lumber producer.
d. All these conditions must be satisfied.
Ans: b. There must be material injury to a U.S. lumber producer.
Economics
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