(Scenario: Far North Canadian Lumber) 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. Is Far North Canadian Lumber dumping lumber in the United States?

Question

Quizplus · Accepted Answer

Far North Canadian Lumber is selling lumber in the United States at a lower price than in Canada. This indicates that they may be engaging in dumping, which is the practice of selling a product in a foreign market at a lower price than it is sold in the domestic market. Therefore, option A is the correct answer.

(Scenario: Far North Canadian Lumber) Suppose That Far North Canadian