Effective Small Business Management 10th Edition by Norman Scarborough

Exercise 12

Thirty furniture makers in the United States recently asked the ITC to impose high tariffs on Chinese makers of wooden bedroom furniture for dumping their products in the U.S. market at extremely low prices. The U.S. manufacturers claimed that the Chinese imports single-handedly sent their industry into a deep tailspin. The Chinese factory owners contend that their low-cost furniture is the result of taking a labor-intensive product and building it with low-priced workers in high-tech modern factories. Identify the stakeholders in this trade dispute. What are the consequences for each stakeholder likely to be if the ITC were to impose tariffs on Chinese furniture What impact do tariffs have on international trade If you served on the ITC, what factors would you consider in making your decision How would you vote in this case Explain.