Explain the Unfair Trade Practices argument as a case against ...

[acc299]

Explain the Unfair Trade Practices argument as a case against free trade.
 
  What will be an ideal response?

Question 2

Applying Coase's theorem, if the cost to you from having the airplane seat in front of you reclined is ________ the benefit to the reclining passenger, you should ________.
 
  A) greater than; request a payment from the reclining passenger
  B) less than; request a payment from the reclining passenger
  C) greater than; make a payment to the reclining passenger
  D) less than; make a payment to the reclining passenger

[karmakat49]

Answer to Question 1

The argument is that foreign firms may sometimes behave strategically against a domestic firm or industry by setting prices below cost in an effort to monopolize the domestic industry. Since this type of behavior would generally be considered a violation of the Sherman and Clayton acts we should give the government power to fight back when it comes to foreign firms whom are not playing by the rules.

Answer to Question 2

C