(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. How large an antidumping duty will the United States apply to lumber imports from Far North Canadian Lumber, Ltd.?

Question

Quizplus · Accepted Answer

The antidumping duty will be equal to the amount of dumping, which is the difference between the normal value (the price at which the product is sold in the home market) and the export price. In this case, the normal value is $1,000 per 1,000 board feet and the export price is $600 per 1,000 board feet, making the difference $400 per 1,000 board feet. Therefore, the antidumping duty will be $400 per 1,000 board feet.

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