Suppose a Vietnamese shoe manufacturer were selling shoes to the European Union for $10 a pair, while he sells those same shoes for $15 a pair in Vietnam. If the cost per pair of shoes is $12, the European Union:

Question

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Dumping occurs when a manufacturer exports a product to another country at a price lower than the price it charges in its home market, or below its cost of production. In this case, the Vietnamese shoe manufacturer is selling shoes in the EU for $10, which is below the cost of $12, and lower than the $15 price in Vietnam.

Suppose a Vietnamese Shoe Manufacturer Were Selling Shoes to the European