(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. What might Far North Canadian Lumber, Ltd., do to avoid the antidumping duty?

Question

Quizplus · Accepted Answer

To avoid the antidumping duty, Far North Canadian Lumber, Ltd., can raise its price in the U.S. market to match or exceed the price of U.S. Lumber, Inc. This will make it more difficult for the U.S. government to claim that Far North Canadian Lumber, Ltd., is engaged in unfair trade practices by selling at a lower price in the U.S. market.

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